Hypothesis Testing 2

Use the Mall of Elbonia Interview Results file, linked in the Resources under the Required Resources heading, and data analysis software to complete the scenario for this assessment.

You may also use the Hypothesis Tester – Single Sample file to test your hypothesis; refer to the Hypothesis Tester – An Introduction media piece (linked in the Resources) to review the process for computing this equation.

Practical Application Scenario

In this scenario, you have just been hired away from your Macy’s linens department buyer position by the Mall of Elbonia (MoE), as the new food court manager. Why? Rumor had it you have just earned your MBA.

One week ago, the MoE conducted convenience interviews with customers in the mall’s food court. One hundred interviews were gathered. The results are summarized in the Mall of Elbonia Interview Results file. In this file, you will find the customers listed in rows, with columns containing data on:

  • The customer’s gender. (If you need this data for your computations in this assessment, use the coding convention: 0 for female, 1 for male.)
  • How much time the customer spent in the mall.
  • How much money he or she spent on food.
  • The customer’s rating of the mall’s friendliness and attractiveness.

After you have applied the descriptive data measures, you find the mean to be particularly telling. You believe that you can happily tell the food court owners that the average amount mall customers spend on food during a visit has increased. You realize this is a one-sample test of hypothesis situation. A 2011 study previously found that customers spent an average of $18.75 per visit.

Directions

Use the data in the Mall of Elbonia Interview Results file and the process outlined below to confirm that the average amount mall customers spend on food during a visit to your mall has increased. Use an alpha of .05.

  1. Determine the null hypothesis via the appropriate math equation, and write a brief explanation.
  2. Determine the alternative hypothesis via the appropriate math equation, and write a brief explanation.
  3. Solve the equation to determine whether to accept or reject the null hypothesis.
  4. Determine whether the p-value indicates acceptance or rejection of the null. Use alpha = .05.

Next, address the following:

  • Report the rejection or acceptance of the null, in terms of the scenario results.
  • Write a three-sentence paragraph that details:
    • Why you can be statistically confident that the average amount a food court’s customer spends has increased, decreased, or remained the same.
    • What would happen if alpha was .01 or .10.
  • Recommend actions to the food court owners based on your findings.

Additional Requirements

Compile your work and report in a 1–2 page Microsoft Word file:

  • Paste in the tables you used to make your calculations.
  • Clearly title your tables, including each row and column.
  • Highlight the results of your data calculations within each table.