Statistics Study Material

STATISTICS
[DATE]
STUDENT ID
[Company address]

Question 1
(a) Claim: The online retail store would be profitable when the average order would exceed
$85.
As the population standard deviation of the order variable is not known, hence the relevant
test statistic would be t.
The p value is lower than the significance level (assuming 5%) and hence, sufficient evidence
is present to reject the null hypothesis and to accept the alternative hypothesis. Hence, the
claim is right that the online retail store would be profitable when the average order exceeds
$85.
(b) Claim: Proportion of the people who has received an e-gift card for Christmas is higher
than 20%.
1: NO, 2: YES
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The p value is higher than the significance level (5%) and hence, insufficient evidence is
present to reject the null hypothesis. Hence, the claim is not right that proportion of the
people who have received an e-gift card for Christmas is higher than 20%.
(c) Claim: Significant difference is present between the mean two appraisers.
Null hypothesis Ho : μAppraiser 1−μAppraiser 2=0
Alternative hypothesis Ha : μAppraiser 1−μAppraiser 2 ≠ 0
Considering that the population standard deviation for the two variables is unknown, hence
the test statistics ought to be t. Further, two sample independent t test needs to be computed
whose result from Excel is illustrated below.
2