Paper Summary:

This paper uses the hypothesis statement, "The typical American drinks on average 3 or more 8 oz. caffeine beverages a day" to demonstrate hypothesis testing. The author points out the steps in the five-step hypothesis test: (1) formulate a null and an alternative hypothesis; (2) select a level of significance or risk for the research; (3) identify the test statistic; (4) formulate a decision rule and (5) do the calculations and make a decision. The paper relates that hypothesis testing can be used to test any claim about a parameter.

Table of Contents:
Research Issue
Hypothesis
Five-Step Hypothesis Test
Results
Other Uses of Hypothesis Testing
Excel Spreadsheets
Hypothesis Test: Mean vs. Hypothesized Value

From the Paper:

"A one-tail test is a test that indicates a direction. This direction can be indicated by the use of words such as less than or more than, or it can be indicated by the use of the greater or less than mathematical signs. The direction of the tail is determined by which direction the alternate hypothesis points. A two-tail test is needed when the words or signs equal and not equal are used. By looking at the hypotheses, Team B determined that they will be conducting a one-tail test to the right."

Sample of Sources Used:

• Lind, D., Marchal, W., & Wathen, S. (2004). Statistical techniques in business and economics. New York: McGraw-Hill/Irwin.

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