# The Null Hypothesis Statistics Problems

2021-04-30
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1. This Implies that 97.11% of the variation in the response variable can be explained a linear relationship with the predictor. In other words it tell us that there is a strong linear relationship.What is the correlation coefficient and interpret its meaning?

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Correlation Coefficient - 0.987917

The correlation value 0.9879 tell us that there exist a strong linear relationship between the variables.

Predict the receipts for a movie that has a Twitter activity of 100,000 using the linear regression formula generated after you run the regression analysis in Excel (just like we did in the lecture notes)

Y = -128751.8007+ 19.41414946x

Where X = 100,000

Therefore; Y= -128751.8007+ 19.41414946(100,000)

Y = 1812663.1453

At the 95% significance level, is there significant evidence of a relationship between Twitter activity and receipts?

Since the P-value 0.002702573 is less than the default alpha 0.05 we do not reject the null hypothesis.

2. Do you accept or reject the null hypothesis?

Therefore we do not reject the null hypothesis at 95% significance level.

Based upon your answers above, provide us with a paragraph (3-4 sentence) conclusion that would be appropriate to explain the results to a senior executive that isnt as familiar with statistics as you are!

From the statistic output above we conclude that there is no significant relationship between Twitter activity and receipts. This means that twitter activity does not depend on the receipts, thus having no effect on each other.

Part 2. Two Sample Hypothesis Testing

1. What are the two variables of interest?

Average rate of return on Large verses Large Growth stock funds.

2. Write a null and alternative hypothesis statement.

H0: There is no significance difference between average rate of return on large value and large growth stock funds

H1: There is a significance difference between average rate of return on large value and large growth stock funds at the 95% significance level, is there significant evidence of a difference between fund rate of returns?

From the regression output the F significant value 0.806953446 is greater than the default alpha value of 0.05 and therefore we say there is no significant difference among the two variables.

2. Do you accept or reject the null hypothesis?

We do not accept hypothesis.

3. Based upon your answer above, provide us with a paragraph (3-4 sentence) conclusion that would be appropriate to explain the results to a senior executive that isnt as familiar with statistics as you are!

From the statistic output, it is evident that there is no significance difference between the two variables, that is the effect of one variable cannot affect the other one and thus the manager can choose proceed perform one thing at ago.

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