Question

California Companies			Companies in other States
Facebook	28		AOL	27
Salesforce	29		IBM	38
LinkedIn	29		Sony	36
Google	30		Epic Games	26
Apple	31		Dell	35
Yahoo	31		Amazon	31
Nvidia	32		Microsoft	33
eBay	32		Average Age	32.29
Adobe	33
Intel	34
Oracle	39
HP	39
Cisco	35
Average Age	32.46

How do you interpret these results?

1. Two hypothesis tests with results that include test statistic, critical value(s), and p-value.

Hypothesis #1:

Null Hypothesis: Average Age of CA employees 5 years younger than other states H=27

Alternate Hypothesis: Average Age of CA employees 5 years younger than other states H not =27

T-Stat: -2.6440

Critical Value: 2.1009

P-Value: 0.0165

Hypothesis #2

Null Hypothesis: Average Age of CA employees 3 years younger than other states H=29

Alternate Hypothesis: Average Age of CA employees 3 years younger than other states H not =29

T-Stat: -1.5478

Critical Value: 2.1009

P-Value: 0.1391

Is this summary correct?

1. Interpretation of the statistical results of the hypothesis tests: When testing the first hypothesis the P-Value was .0165 with leads to accepting the null hypothesis which validates that ages are within 5 years of the mean. This would make the average ages between 27 and 32 (the mean). In the second hypothesis, the P-Value was .1391 would means we reject the null hypothesis.

Answer 1

Correct Summary is:

Interpretation of the statistical results of the hypothesis tests: When testing the first hypothesis the P-Value was .0165 with leads to rejecting the null hypothesis, Average Age of CA employees 5 years younger than other states H not =27. In the second hypothesis, the P-Value was 0.1391 would means we do not reject the null hypothesis, Average Age of CA employees 3 years younger than other states H=29.

Because:

Where level of significance is 0.05

When p value is 0.0165 < 0.05, so we reject the null hypothesis.

When p-value is 0.1391 > 0.05, so we do not reject the null hypothesis or we can say accept the null hypothesis.