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Hypothesis Testing

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Words: 275

Pages: 1

50

Mean Number of Defective Flash Drives
Name
Institutional Affiliation
Data

The ability to make operational assumptions is essential for a business. It helps the administrators to estimate expenditure and therefore determine the viability of a business (Advani, 2017). For the business in question, the number of defective flash drives in important because they cannot be sold and thus affect the marginal profits of a business. According to the manager, the maximum number of defective flash drives is 7. To ascertain the truth of this claim, the hypothesis is tested using t-test analysis (“What is a test statistic?”, 2017).
H0, t <7, the null hypothesis states that the number of defective flash drives is at most seven
The alternative hypothesis usually negates the null hypothesis (Taylor, 2017). For this reason in this case;
Ha, t>7 or the number of defective flash drives is higher than seven.
To conduct this analysis, the QI Macros for Excel were used. QI Macros are a cheap and straightforward excel add-in that can be used to carry out multiple statistical analyses. According to the software, the following results were established:
t-Test 1-sample Test Mean 7 Confidence 0.95 n 30 Average 7.033333333 Test Stdev p 1-sample Stdev StDev 1.376736104 1.376736104 0.930 SE Mean 0.251356473 T -0.132613785 TInv 2.045229642 p – One-sided 0.447707362 Cannot Reject Null Hypothesis because p > 0.05 (Means are the same)
p – two-sided 0.895414724 Cannot Reject Null Hypothesis because p > 0.

Wait! Hypothesis Testing paper is just an example!

05 (Means are the same)
Upper Confidence Interval 7.547415043 Lower Confidence Interval 6.519251624 In both cases, the tests failed to reject the null hypothesis.
This implies that the number of defective flash drives every week is less than seven,
The decision will, therefore, be that the production is efficient and it can proceed with too much loss due to defective devices.

References
Advani, A. (2017). How to Forecast Revenue and Growth. Entrepreneur. Retrieved 7 January 2018, from https://www.entrepreneur.com/article/76418
Taylor, C. (2017). Learn the Differences of Null Hypothesis and Alternative Hypothesis. ThoughtCo. Retrieved 7 January 2018, from https://www.thoughtco.com/null-hypothesis-vs-alternative-hypothesis-3126413
What is a test statistic?. (2017). Support.minitab.com. Retrieved 7 January 2018, from http://support.minitab.com/en-us/minitab-express/1/help-and-how-to/basic-statistics/inference/supporting-topics/basics/what-is-a-test-statistic/

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