Inferential Statistics and Findings
QNT/561
December 8, 2014
Inferential Statistics and Findings
The purpose of this paper is to create inferential statistics (hypothesis test) using the research question and two variable (dependent, DV and independent, IV), the learning team B developed for the Week 2 Business Research Project Part 1 assignment. The paper focuses on the statistical tool used to test the hypothesis at 95% confidence interval and interprets the results providing the findings.
Colonel Motors produces many types of vehicle such as sport cars, coupes, family sedans, mini-vans, full-size vans, crossovers, SUVs, and pick-up trucks. They have had to recall over 2million of the vehicles due to a faulty ignition switch that was put in most of the vehicles since 2006. They want to know if the faulty switches caused more accidents than normal or if the problem was caught in time and other than drop in sales, will there be any other losses for the company.
Research Question (RQ)
Is there a correlation between the faulty ignition switches and accidents?
Hypothesis Statements
(H0): There is no correlation between faulty ignition switches and accidents.
(H1): There is a correlation between faulty ignition switches and accidents.
Hypothesis test with a 95% confidence level, using the statistical tool (P-value)
If our statistical analysis shows that the significance level is below the cut-off value we have set, which is 0.05, we reject the null hypothesis and accept the alternative hypothesis. Alternatively, if the significance level is above the cut-off value, we fail to reject the null hypothesis and cannot accept the alternative hypothesis (statistics.laerd.com, 2014). You should note that you cannot accept the null hypothesis, but only find evidence against it.
3,000 accidents
1,231 accidents
95%
a is 0.05
The significance level, 0.3927 and 0.4279, is lower than 0.05, so we...