Lab 7: Confidence Intervals and Hypothesis Testing in Excel, Lab Reports of Statistics

Download Lab 7: Confidence Intervals and Hypothesis Testing in Excel and more Lab Reports Statistics in PDF only on Docsity! STAT 280 spring 2006 Lab 7 Labs must be printed out and may be dropped off to your TA’s mailbox located in Duncan Hall 1092. Labs are to be written up in legible reports with all graphs labeled. It is possible to insert graphs and spreadsheets into a Microsoft word document. You also need to make sure the Analysis ToolPak add-in is installed on Excel. In Excel, go to Tools  Add-Ins and make sure Analysis ToolPak is checked and click Ok. Data You will be generating your own data for this lab. Objectives The purpose of this lab is to give an introduction to confidence intervals and hypothesis testing. Tasks 1. (10 points) First we concentrate on how to simulate data coming from a normal distribution. a.) Using Excel, generate 1000 random numbers between 0 and 1 (using RAND function). These will be used in the next step as probabilities to generate random normal distribution variates. b.) Use NORMINV function generate inverse of normal cumulative distribution with mean 0 and standard deviation of 1. Use the random numbers you have generated in the previous step c.) Plot a histogram of the Normal (0,1) random variates you’ve created in part b. Does it look approximately normal? d.) The steps outlined in a-c will allow us to simulate arbitrarily large samples from a normal distribution with any mean and standard deviation. Use what you have learned to simulate 250 observations from a Normal Distribution with mean of 300 and standard deviation of 10. Plot the histogram.