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Starbucks Problem (Hypothesis Testing) An advertising firm hired by the Starbucks store on a local college campus is wondering whether the store should tailor its ads more to men or to women. The firm completes an observational study of the store, gathering gender data at various times of the day throughout a week. The firm gathered a sample 260 customers; 154 of the customers were female and 106 were male. Step 1: Formulating a Statistical Question What is the statistical question? ____________________________________________________________________________________________________ (Note: Your question should require the use of a hypothesis test.) Null Hypothesis: Alternate Hypothesis: H0 = Ha = Step 2: Designing a plan and collecting data What data do we need to collect? How can we design a simulation to produce samples? Step 3: Analyzing the data Create a representation of the distribution. Find the p-value for the sample statistic (i.e. the probability of a value at or more extreme than our statistic). Step 4: Interpreting the data Examine the strength of the evidence. Guidelines for evaluating strength of evidence from p-values: 0.10 < p-value not much evidence against null hypothesis 0.05 < p-value 0.10 moderate evidence against the null hypothesis 0.01 < p-value 0.05 strong evidence against the null hypothesis p-value 0.01 very strong evidence against the null hypothesis Formulate a conclusion about the hypothesis. This lesson was adapted from Shaughnessy, J.M., Chance, B., & Kranendonk, H. (2009). Focus in High Schoo Mathematics Reasoning and Sense Making: Statistics and Probability. Reston, VA.: The National Council of Teachers of Mathematics, Inc.