ECON1193 BUSINESS STATISTICS SEMESTER 2, 2017 REPORT 3

HYPOTHESIS TESTING AND REGRESSION ANALYSIS

After finishing the first two reports, you now should be able to analyze the collected data, and you
should be able to use that to come up with useful information that helps you to make well informed
business decisions.

In this report, you have to conduct hypothesis testing and analyze the data using regression.

This report will have the following components:

1. Repeat or update the research topic (which you have written in report 1)

2. Repeat or update the purpose of your research topic (from report 1)

3. Introduction for regression analysis:

Explain the purpose of your research
Explain why you are interested in your research
Explain what you expect to see from the data

4. By selecting the same significance level which you used in report 2 (for building confidence
intervals) test the hypothesis for mean for both (independent and dependent) the variables by
doing the following:
State the null and alternative hypothesis for independent and dependent variables,
Find the test statistic.
Determine critical value or p-value,
Find the decision, conclusion, possible error
Explain the meaning of this error in the context of the problem, and how to minimize
this error.

5. Use Excel to draw a graph that shows the relationship between the dependent variable and the
independent variable (See Technical Guide). Describe the relationship

6. Use Excel to estimate the regression equation that describes the relationship between the
dependent variable and the independent variable (See Technical Guide)

7. Show the value of the regression coefficient (slope) and explain what it means. Compare with
the result from the graphical analysis

8. Test the significance of the independent variable using both the critical value and p-value
method. Use = 0.05. Show the hypothesis and the conclusion.

9. Using excel output from the above questions, find the coefficient of determination and explain
what it means

10. Conclusion:
Draw a conclusion that relates to your research purpose
Discuss at least two findings in the body that support your conclusion
Discuss the application of your conclusion
The deadline to submit your 3st report is 5 pm, Friday of week 11 and the each team will
have team presentation of this report in the class in week 12. Based on the feedback from
the lecturer and the peers in the class on your presentation, you can revise your report.

The deadline to submit the FINAL REPORT (including report 1, report 2, and report 3) after
making all the corrections is 5 pm, Wednesday of week 13.