For these project assignments throughout the course you will need to reference the data in the ROI Excel spreadheet. Download it here.
For each of the 2 majors, conduct a full hypothesis test at the 5% significance level:
The mean “Cost” for college is $160,00.
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 at those numbers? What exactly does hypothesis testing do that looking at the numbers in the sample and saying “one is higher than the other” cannot do? This answer is critical to your final project. It demonstrates that you understand why you just can’t look at the mean, median, and mode of the spreadsheet and “call it a day.”
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