Engineering Major

Hypothesis Test

Sample Size

20

Sample Mean

$164,680.00

Sample Standard Deviation

66385.1219

Hypothesized Value

160000

Standard Error

163.58758

Test Statistic t

28.6085288

Degrees of Freedom

19

p-value (lower tail)

1

p-value (upper tail)

0

p-value (two tail)

0

Business Major

Hypothesis Test

Sample Size

20

Sample Mean

$188,632.00

Sample Standard Deviation

50503.42902

Hypothesized Value

160,000

Standard Error

11292.91004

Test Statistic t

2.535396094

Degrees of Freedom

19

p-value (lower tail)

0.98991306

p-value (upper tail)

0.01008694

p-value (two tail)

0.020173879

oThe average '30-Year ROI' for Business majors is less than for Engineering Majors.

2.In a highlighted box, explain how each hypothesis test contributes to the central question of which major would give the better ROI.Why do we need hypothesis testing?Isn't it enough to look at the sample of 20 schools and look atthose numbers?What exactly does hypothesis testing do that looking at the numbers in the sample and saying "one ishigher than the other" cannot do?This understanding is critical to your Week 8 project.It demonstrates that you know why you have to have hypothesis testing as opposed to looking at the mean, median, and mode from the sample and "call it a day."