Hypothesis Testing on Cost Associated with Moving a Business
Introduction
“The U.S. Census Bureau reports that approximately 40 million Americans relocate each year, and the U.S. Postal Service processes about 38 million change-of-address forms annually” (Entrepreneur, 2006). There are similar reports kept on business moves, the number of compelling reasons for making a move, will be considered by almost every entrepreneur at some point in time in an effort to expand. Some of the main reasons why home-based businesses move into an office setting are as follows; labor and work force issues, the desire to reach new markets, improving the surroundings, and the desire to lower costs or increase cash flow. Cost is always a major concern in any business decision, and a move can be either an opportunity or a cost issue. Currently, the cost of living varies among cities. Still, costs involve more than living expenses, companies today are forced to compromise between staying close to target markets and choosing the lowest-cost facility. “An example of this is the migration of people from central cities to nearby suburbs, which, according to the U.S. Census Bureau, resulted in 3 million people leaving the cities, while the suburbs gained 2.8 million in recent years” (Entrepreneur, 2006).
Moving a business, specifically a home-based one is not without risk. However, for some businesses, the odds are in their favor, especially if they have been in business for some time. Nevertheless, there are things that can go wrong such as rushing the decision to move and only focusing on certain cost. This paper will focus on the cost of moving a home-business into an office setting. It will also formulate a numerical and verbal hypothesis statement; a five-step hypothesis test on the data drawn, and the results will be summarized.
Numerical and Verbal Hypothesis Statement
In order to calculate the cost of moving a business, there are a number of factors that we must...