MBA 6350 Week 5 Homework Assignment: Two-Sample T-Test in Excel

This assignment is intended to test your knowledge of how to appropriately compare two means in Excel using the data file Student_Debt.xlsx. The data file has 50 randomly selected student debt amounts from 2011 and 50 randomly selected student debt amounts from 2007. You want to know whether the sample data provide enough evidence to believe there is a statistical difference between the debt amounts in the two years. The null and alternative hypotheses are shown below.

Null Hypothesis: Mean Student Debt in 2011 is equal to Mean Student Debt in 2007

Alternative Hypothesis: Mean Student Debt in 2011 is not equal to Mean Student Debt in 2007

Run an F-test for two sample variances using an alpha level of 0.05 and answer the following questions:

Which of the two years has the higher mean? What are the values?

Provide your answer here/below:

Which of the two years has the higher variance? What are the values?

Provide your answer here/below:

Based on the statistical output, would you conclude that variances are equal or not equal? Provide an appropriate/authoritative explanation leveraging the statistical output.

Provide your answer here/below:

Run an appropriate t-test (assuming either equal or unequal variances based on your conclusion in 1c above) using an alpha level of 0.05 and answer the following questions:

Is this a one-tailed or two-tailed test? Provide an appropriate/authoritative explanation that fully explains the choice.

Provide your answer here/below:

Based on the statistical output, would you conclude that means are equal or not equal? Provide an appropriate/authoritative explanation leveraging the statistical output.

Provide your answer here/below:

Using everyday language that could be understood by parents and students, what does the analysis say about student debt in 2011 versus 2007? Provide an appropriate/authoritative explanation leveraging the statistical output (e.g., use confidence level, rationale, etc.

Provide your answer here/below:

Make sure that you run all the required analyses using the Data Analysis Toolpak in Excel and SUBMIT the Data Analysis Output along with the Data file in a Single Excel workbook that shows all your output.

Use as many pages (and extra space) as needed to fully respond to each question.