Hypothesis Testing on Vacation

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Hypothesis Testing on Vacation Time: Aug, 1990 Place: Campground “Can we buy an RV?” “Why?” “Everyone else does!” “Really!?” Let us collect some data! My Favorite Recipe : Question Data Analysis Conclusion Decision Through Data! Question: “Does everyone else have RV’s?”

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Hypothesis Testing on Vacation

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Hypothesis Testing on Vacation

Time: Aug, 1990

Place: Campground

“Can we buy an RV?”

“Why?”

“Everyone else does!”

“Really!?”

Let us collect some data!

My Favorite Recipe :

• Question
• Data
• Analysis
• Conclusion

Decision Through Data!

Question:

“Does everyone else have RV’s?”

If p>0.5, we will buy an RV!

Data: To and from Yellowstone, tallied all vehicles in the opposite direction.

Hypothesis Testing on Vacation

Original Data Collection Sheets

Hypothesis Testing on Vacation

HO: p = 0.5 HA: p < 0.5

Analysis:x = 67RV’s n = 857vehicles z = -24.7 P-value = 0

Conclusion:

There is strong evidence for p<0.5.

Less than 50% people have RV’s!

\$ saved!

Analysis:x = 67RV’s n = 857vehicles We want 95% confidence.

Conclusion:

We are 95% Confident that

the true p = (0.078±0.018)!

Only 6% to 9.6% people have RV’s!

\$ saved!