Question 1 - Hypothesis Test for the Mean - Suppose that you randomly sample 15 pizza places and are given the following data about price of a medium 2 topping pizza. Test the claim that the price of a medium 2 topping pie in OKC/Norman is $14 on average.

Pizza Place	Price Medium 2-topping	Pizza Place	Price Medium 2-topping	Pizza Place	Price Medium 2-topping
1	10.99	6	8.00	11	9.99
2	7.99	7	8.50	12	17.99
3	20.00	8	20.00	13	18.00
4	15.00	9	11.99	14	12.00
5	9.50	10	8.99	15	11.50

a) State the null and the alternative hypotheses.

Ho:

Ha:

b) Use the standardized testing procedure and test the claim = 0.05.

i) State the Critical Value(s) and State the Decision Rule (i.e. when will you will you reject Ho?). You can use either the CV method or p-value method.

ii) Test Statistic: t = ? What is the p-value?

iii) What is your formal conclusion. Does it support the claim that the mean price is $14?

Q2 - Mean - Difference in Price of Medium

Suppose you are given follow up information on the pizza question above. You are now given location information on pizza places to see if they are located in Norman or OKC. Test to see if there is a difference in price based on location.

Pizza Place	Price Medium 2-topping	Norman (0) or OKC (1)	Pizza Place	Price Medium 2-topping	Norman (0) or OKC (1)	Pizza Place	Price Medium 2-topping	Norman (0) or OKC (1)
1	10.99	0	6	8.00	1	11	9.99	1
2	7.99	0	7	8.50	0	12	17.99	1
3	20.00	1	8	20.00	1	13	18.00	0
4	15.00	1	9	11.99	0	14	12.00	0
5	9.50	0	10	8.99	1	15	11.50	1

1. State the null and the alternative hypotheses.

Ho:

Ha:

1. Use the standardized testing procedure and test the claim = 0.05.

i) Provide the test Statistic: t = ? and p-value?

iii) What is your formal conclusion:

Question 3 - Chi-Square Test: Suppose you are given the following information about Hypertension by Age Group. Perform a hypothesis test on whether age group and hypertension are independent from one another at =0.05.

Note: Hypertension (HTN) - 0=No; 1=yes; Age Group - 0 = 18-39, 1= 40-59, 2=60+

ID	HTN	Age Group	ID	HTN	Age Group	ID	HTN	Age Group	ID	HTN	Age Group
ID01	1	0	ID11	0	1	ID21	0	0	ID31	0	1
ID02	1	2	ID12	0	2	ID22	0	2	ID32	1	0
ID03	0	2	ID13	1	0	ID23	1	1	ID33	0	0
ID04	1	1	ID14	1	1	ID24	1	0	ID34	1	1
ID05	1	1	ID15	1	2	ID25	1	2	ID35	1	2
ID06	0	1	ID16	0	0	ID26	0	0	ID36	0	0
ID07	0	2	ID17	1	1	ID27	1	2	ID37	1	1
ID08	1	1	ID18	0	0	ID28	0	2	ID38	0	0
ID09	0	0	ID19	1	2	ID29	1	2	ID39	1	1
ID10	1	2	ID20	1	1	ID30	1	1	ID40	1	0

a) Write out hypotheses:

b) Provide the Test Statistic and p-value:

c) State your conclusion. Does it support that Hypertension is associated with age group?

Bonus (10 pts): Given below are seven observations collected in a regression study on two variables, years education and income.

Person	Years Education	Income (1000s)	Person	Years Education	Income (1000s)
1	22	112	8	21	192
2	14	59	9	14	59
3	12	28	10	24	328
4	10	47	11	10	37
5	17	96	12	16	85
6	18	85	13	18	67
7	11	72	14	12	52

a. Find the correlation between the number of years of education and income.

b. Interpret the value from (a)

c. Create the regression equation using years of education (x) to predict income (y).

d. Using your regression equation, if someone had 15 years of education, determine the predicted income.

e) Report and interpret the R2 value.