Project Week 6

For these project assignments throughout the course you will need to reference the data in the ROI Excel spreadsheet. Download it here.

Remember the central question – which major, business or engineering, will give the better ROI?

1. For each of the 2 majors, conduct a full hypothesis test at the 10% significance level:
   • The mean ‘Cost†for a college is $160,000.

2. For Business versus Engineering majors conduct a full, two-sample, full hypothesis test at the 5% significance level (assume the variances are not equal):The average â€30-Year ROI†for Business majors is less than for Engineering Majors.

3. In a highlighted box, explain how each hypothesis test contributes to the central question of which major would give the better ROI. Why do we need hypothesis testing? Isn’t it enough to look at the sample of 20 schools and look at those numbers? What exactly does hypothesis testing do that looking at the numbers in the sample and saying “one is higher than the other” cannot do? This answer is critical to your final project. It demonstrates that you understand why you just can’t look at the mean, median, and mode of the spreadsheet and “call it a day.”

Hint from Dr. Klotz: Notice that you are conducting a full hypothesis test. This is more than running a computer program. Make sure that you have all parts as discussed in the threads.

 

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