Guide to Using Excel For Basic Statistical Applications To Accompany Business Statistics: A Decision Making Approach, 7th Ed. Chapter 10: Hypothesis Testing and Estimation for Two Population Parameters By Groebner, Shannon, Fry, & Smith Prentice-Hall Publishing Company Copyright, 2008

Chapter 10 Excel Examples Hypothesis Tests – Two Means – Hypothesis Tests – Two Means – Hypothesis Tests – Two Means – Hypothesis Tests – Two Means – SUV Vehicle Mileage

Hypothesis Test – Two Means SUV Vehicle Mileage Hypothesis Test – Two Means SUV Vehicle Mileage Issue: A national car rental agency wishes to test whether SUV vehicles have different mean city mileage versus highway mileage. The premise is that mean highway mileage will exceed mean city mileage Objective: Use Excel 2007 or 2010 to help test the hypothesis for the difference in population means. Data file is Mileage.xls

Hypothesis Test – SUV Vehicle Mileage Open file Mileage.xls The null and hypothesis to be tested are:

Hypothesis Test – SUV Vehicle Mileage Select the Data tab Select Data Analysis Select Descriptive Statistics OK

Hypothesis Test – SUV Vehicle Mileage Input Range = A1:B26 Note- This range covers BOTH columns Grouped by Columns Labels in First Row New Worksheet Ply – Descriptive Summary Statistics OK

Hypothesis Test – SUV Vehicle Mileage Sample Means, Standard Deviations and Variances are shown for each set of data

Hypothesis Test – SUV Vehicle Mileage Using the Data Analysis tool, Select t-test Two-Sample Assuming Equal Variances

Hypothesis Test – SUV Vehicle Mileage Variable 1 Range: A1:A26 Variable 2 Range: B1:B26 Hypothesized Mean Difference = 0 Alpha = 0.05 New Worksheet Ply = test

Hypothesis Test – SUV Vehicle Mileage Resulting calculations: p value for one tailed test is.007 which is less than.05 so we reject the null hypothesis.