Six Sigma Tools for Testing Statistical Significance
Amazon: Integrate the statistical concepts and six sigma principles that you've been studying in this module and turn in your two page paper addressing the following questions : 1. Find some data available for Amazon and form a hypothesis. 2. Please choose the appropriate test to conduct the hypothesis testing. Review information on hypothesis testing Six Sigma below: Wikipedia (n.d.). Student's t-test, retrieved from http://en(dot)wikipedia(dot)org/wiki/Student%27s_t-test Here are some videos on the Khan Academy website that explains hypothesis testing and using small samples. What is hypothesis testing? Review these Khan Academy Videos: http://www(dot)khanacademy(dot)org/video/hypothesis-testing-and-p-values?topic=statistics http://www(dot)khanacademy(dot)org/video/one-tailed-and-two-tailed-tests?topic=statistics What is a t-test? Review these Khan Academy videos Z-statistic v t-statistic: http://www(dot)khanacademy(dot)org/video/z-statistics-vs--t-statistics?topic=statistics How to do a t-test: http://www(dot)khanacademy(dot)org/video/small-sample-hypothesis-test?topic=statistics
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Hypothesis testing is a statistical method that is used to determine whether a hypothesis regarding a certain perimeter in a given amount of data usually referred to as a population, using data measured in a sample is true CITATION Pec11 \l 1033 (Peck, Olsen, & Devore, 2011). The test aims at determining the likelihood of a certain statistical sample could be selected and the hypothesis tested is true. It is also known as significance testing and it is a process used to select samples and get more information of its characteristics in a sample CITATION Pec11 \l 1033 (Peck, Olsen, & Devore, 2011).
Hypothesis testing involves 4 steps that are; identification of a hypothesis to be tested, determining rationale by which the hypothesis will be determined to be true or not, select a random sample and get the mean, and compare the sample observation to what we expect as true or not CITATION Pec11 \l 1033 (Peck, Olsen, & Devore, 2011).
Several methods are applied in hypothesis testing that depends on the number of variables used and the type of statistic being tested the common ones being the t- statistic and the Z- statistic CITATION Sah13 \l 1033 (Sahoo, 2013). However, this paper will focus on the t-statistic. The t-statistic was developed by Gosset and used to predict if two sets of data following a normal curve are similar or different. CITATION Sah13 \l 1033 (Sahoo, 2013) There two approaches in the t-statistic, that is for the unpaired (independent) samples where separate sets of data that are identical in distribution and independent occur. The other is for the unp...
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