Business

RES342
March 12, 2012

Introduction
Hypothesis testing is used to determine the correct answer and obtain a conclusion. This is usually done through gaining research, testing research and drawing conclusions from that research. Hypothesis testing includes selecting a hypothesis, creating a null hypothesis, creating an alternative hypothesis, finding the t-value and comparison of the results in order to choose the best possible solution. This paper will discuss Team B’s steps in finding a null hypothesis as well as an alternative hypothesis. These will be created based upon data obtained from baseball statistics. Specifically we will analyze the correlation between aattendance and number of wins that a team has. The five-step hypothesis test will be used to decide whether to or not to reject the null hypothesis.

Hypothesis
      A hypothesis is a statement based on a guess about the relationship between two variables.   Hypothesis testing is used in making decisions every day by researchers, managers and other business people.   When determining a hypothesis the first step is to come up with an idea, and develop a statement that we will prove or disprove our idea. The hypothesis statement must include a null hypothesis and an alternate hypothesis.   One statement must be true, the other false, opposing each other.   Our hypothesis is based on attendance in baseball stadiums that may be directly related to the number of wins a team has. The steps in hypothesis testing are as follows: idea, formulate the hypothesis, design the experiment, set up a decision rule, collect data, make a decision and possibly revise ideas if the hypothesis did not turn out the way you had planned (Doane & Seward, 2007).

Statement
      Attendance in the baseball stadiums are tied directly to the number of wins that a team has. Attendance reaches 2 million or more only if a team has 69 or more wins, otherwise the attendance is below 2 million.
H0: µ ≥ 69

H1: µ < 69...