BUS520 MODULE 2 SLP: Confidence Intervals and Hypothesis Testing

Trident University
Confidence Intervals and Hypothesis Testing
BUS520 MODULE 2 SLP
Name
Course
Date
1. 95% confidence interval
Annual Amount Spent on Organic Food
95%, 1.960sx̄
Where sx̄ =s/ √N 3728.327499/√ 124= 3728.3275/ 11.1355= 334.81369
Where 1.96* 334.81369= 656.235
Thus, 95% Confidence Interval 11,046.4839 ±656.235 (±5.94%)
Confidence Interval is, 11046.48 (95% CI 10,390.25 to 11,702.72)
Age
95%, 1.960sx̄
Where sx̄ =s/ √N 16.29459927 / 11.1355= 1.4632
95%, 1.960sx̄
Where 1.96* 1.4632= 2.868
Thus, 95% Confidence Interval 48.2339 ±2.868 (±5.95%) = 45.4, 51.1
Confidence Interval is, 48.23, 95% CI [45.4, 51.1]
2. Generate a 95% confidence interval for the following two variables using the Excel formula =CONFIDENCE.T(): Annual Income and Number of People in the Household.
Annual Income
Standard Deviation, s

72744.34

Count, N:

124

Sum, Σx:

19964821

Mean, x̄:

161006.62

95%, 1.960sx̄
161,006.621 ±12,803.963
Confidence Interval is 161,006.62, 95% CI [148202.89, 173810.35]
Number of People in the Household
Standard Deviation, s

1.25

Count, N:

124

Sum, Σx:

535

Mean, x̄:

4.31

95%, 1.960sx̄
4.31 ±0.219
Confidence Interval is 4.314, 95% CI [4.10, 4.53]
3. Interpret the confidence intervals for each of the variables.
We can expect that 95% of the average annual income around the true mean falls between 148,202.89 and 173,810.35. The two CIs built...