Inferential Statistics and Findings

Inferential Statistics and Findings Sabah Saiyed QNT/561 August 2, 2014 Ranjit Rebello  Inferential Statistics and Findings The purpose of this paper is “to create inferential statistics (hypothesis test) using the research question and two variables (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 hypotheses at 95% confidence interval and interprets the results providing the findings” (Instructions-week 5, 2014). Oso Inc., produces hand crafted, unique, and different styles of pens. It sells approximately 100,000 pens to distributors and individual customers and the sales report show good sales numbers. But the company wants to determine how they can increase their profitability, thus approached the research team who proposed the following research question. Research question (RQ) Is there a correlation between Product Profitability (DV) and Product sales (IV)? Hypothesis statements (H0): There is no correlation between Product Profitability (DV) and Product sales (IV). (H1): There is a there is a correlation between Product Profitability (DV) and Product sales (IV). Hypothesis test with a 95% confidence level, using the statistical tool (P-value) “The viability of the null hypothesis is determined in light of the data and the aim of tests of significance is to calculate the probability (P value), that an observed outcome has merely happened by chance. Reject the null hypothesis, if there is significant evidence that, P < 0.05 and fail to reject the null hypothesis is p > 0.05” (Gupta, 2012). Data used was observations of 100 randomly selected sales figures. (Please refer worksheet attach below). Interpretation of the results and findings The statistical information shows the distribution was normal, with a mean/average of $10.04 and standard deviation of $2.71. It showed 95% confidence interval (9.51, 10.57), which means that the company can be 95% confident that each pen will make between $9.51 and $10.57 (Team B, Descriptive statistics, 2014). The p value (3.72E-60) is much less than the significance level i.e.is 5% or α=0.05. Thus, reject the null hypothesis, in favor of the alternative. The test concludes that there is a correlation between sales and profit.  Appendix (A & B on sheet 1 and 2 resp). Please double click to refer the data and calculation in excel sheet. References Gupta, S. K. (2012). The relevance of confidence interval and P-value in inferential. Indian Journal of Pharmacology. Retrieved from statisticshttp://www.ncbi.nlm.nih.gov/pmc/articles/PMC3271529/ University of Phoenix. (2014). Individual paper Instructions-week five. Retrieved from https://newclassroom3.phoenix.edu/Classroom/#/contextid/OSIRIS:47106628/context/co/view/activityDetails/activity/1f99f44e-943a-4444-a470-4377447e1891/expanded/False University of Phoenix. (2014). Team B paper data-week two. Retrieved from https://newclassroom3.phoenix.edu/Classroom/#/contextid/OSIRIS:47106628/context/co/view/activityDetails/activity/a2364ef4-a85c-4bd5-ac84-b9c98711bcf5/expanded/False INFERENTIAL STATISTICS AND FINDINGS 5 Running head: INFERENTIAL STATISTICS AND FINDINGS 1