A town official claims that the average vehicle in their area sells for more than $45,000. Using the data you obtained in week 1, as well as the summary statistics you found for the original data set (excluding the super car outlier), run a hypothesis test to determine if the claim can be supported. Make sure you state all the important values so your fellow classmates can use them to run a hypothesis test as well.
First determine if you are using a z or t-test and explain why. Then conduct a four-step hypothesis test including a sentence at the end justifying the support or lack of support for the claim and why you made that choice.
I encourage you to review the Week 6 Hypothesis Testing at the bottom of the discussion forum. This will give you a step by step example on how to calculate and run a hypothesis test using Excel. I DO NOT recommend doing this by hand. Let Excel do the heavy lifting for you.
Instructions: Your initial post should be at least 150 words. Make sure you include your data set in your initial post as well. You must also respond to at least 2 other students. Responses should be a minimum of 50 words and may include direct questions. In your first peer response post, look at the hypothesis test results of one of your classmates and explain what a type 1 error would mean in a practical sense. Looking at your classmate’s outcome, is a type 1 error likely or not? What specific values indicated this?
In your second peer response post, using your classmate’s values, run another hypothesis test using this scenario: A town official claims that the average vehicle in their area Does Not sell for $45,000. Conduct a four-step hypothesis test including a sentence at the end justifying the support or lack of support for the claim and why you made that choice. Note: this test will be different than the initial post, starting with the hypothesis scenario, it will be different.