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For each of the 2 majors, conduct a full hypothesis test at the 0.01% significance level:
Claim: The mean ‘Cost’ for a college is $160,000.
You get things like the standard deviation through Excel calculations. Remember, your sample size is 20, and you don’t know the population standard deviation.
2. For Business versus Engineering majors conduct a full, two-sample hypothesis test at the 10% significance level (assume the variances are not equal). Claim: the average ’30-Year ROI’ for Business majors is less than for Engineering Majors.
Reminder: Use all the steps of hypothesis testing. If you need guidance, go to Assignment 1, #2.
3. Answer these questions that will go into the Week 8 paper.
a. Will one of the two majors cost more than the other according to the average cost calculated in Week 2 with the sample data? If so, which one?
b. Does the hypothesis tests support that one of the majors costs more than another? If so, which one costs more?
c. Why did we need the hypothesis test if Week 2 showed us which school from the sample cost more?
d. According to these results, what would you tell our student who is choosing between majors if he/she asked, “What is it going to cost to attend a business/engineering school?”
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