How Strabucks Saved My Life

Topics: Statistical hypothesis testing, Student's t-test, Statistics Pages: 4 (1031 words) Published: February 10, 2013
1- During period of high electricity demand, especially during the hot summer months, the power output from a gas turbine engine can drop dramatically………….. Conduct a test to determine if the mean heat rate of gas turbines augmented with high-pressure inlet fogging exceeds 10,000 kJ/kWh. Use α = .05. (data for this question (GASTURBINE.sav) is in the CD accompanying the text book. This is also provided in the D2L content area in Module 3, Assessment section. Note that here we are interested in the heat rate only.) Do not forget to state the hypothesis.

The hypothesis can be expressed as:
H0: μ ≤10000 kJ/kWh
Ha: μ >10000 kJ/kWh
Where µ is the heat rate.
It is one sample t- test.

One-Sample Statistics|
| N| Mean| Std. Deviation| Std. Error Mean|
HEATRATE| 67| 11066.43| 1594.960| 194.855|

One-Sample Test|
| Test Value = 10000 |
| t| df| Sig. (2-tailed)| Mean Difference| 95% Confidence Interval of the Difference| | | | | | Lower| Upper|
HEATRATE| 5.473| 66| .000| 1066.433| 677.39| 1455.47|

Since SPSS reports the P-value on the basis of a two-tailed test. Hence the one-tailed P-value is 0.000/2 = 0.000 < .05 Reject the null hypothesis because p value is less than the significance level. The sample supports the alternative hypothesis that Mean heat rate is greater than10000 kJ/kWh.

2-The CEO of Kohl’s is interested in understanding whether the average store sales for the stores in the east coast are significantly different from those in the west coast. The CEO suspects that since the company has been advertising more in the east coast, the east coast sales would be higher than those in the west coast. In order to test his hypothesis, the CEO asks his secretary to randomly pick 10 stores each in the east and west coasts and record their average monthly sales for the past year(in thousands of dollars).

The hypothesis can be expressed as:
Define 1 as the mean...
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