MGM330-0704A-04 Business Decision-Making - Phase 3 Discussion Board Essay

MGM330-0704A-04 Business Decision-Making - Phase 3 Discussion Board - Essay Example Hypothesis testing is a statistical method can be utilized in a variety of applications. The method basically allows a researcher to make a claim about a particular population (data) called the null hypothesis which is then tested by this method to determine if the claim was true or false (Levine & Stephan & Krehbel & Berenson, 2006, p.332). The test works by providing a null hypothesis and an alternative hypothesis. If the null hypothesis is either accepted or rejected. If the null hypothesis is rejected that means there is sufficient evidence to validate the alternative hypothesis is true. The normal curve and its corresponding normal distribution table which is associated with Z values is an important variable in the process of a hypothesis test. Hypothesis testing follow a particular algorithm or procedure that must be perform every time the test is perform. The key steps of a hypothesis test are: Another powerful and very useful statistical method is regression analysis. The regression analysis method is a predictive model that allows the statistician to determine the values of a variable within an equation based on the given data about the other variable. This method has very valuable application for forecasting. A common technique of this model is simple regression which can be applied utilizing the least square approach. This approach uses the formula Y = aX + b (McClave & Benson & Sinich, 2001, p.460). The two key variables are called the dependent and the independent variables. An example of an application of this model is a production problem. A company can used this equation to predict many sales it can generate in the future based on past sales totals of the past years. Software such as Microsoft Excel, Minitab or graphical calculators such as the Ti-89 Titanium created by Texas Instrument can be utilized to perform linear regression analysis. There is another type o f regression analysis called multiple