Conducting Hypothesis Test on Centrifugal Bike Rental Company Data
Has the average number of daily Casual Rides at Centrifugal Bike Rental Company increased since last year?
Given the data collected over the past six months, along with the previous average of 500 daily Casual Rides, we need to conduct a hypothesis test to determine if there has been a significant increase in the number of Casual Rides.
Steps to Conduct the Hypothesis Test:
1. Define the hypothesis:
- Null Hypothesis (H0): The mean daily Casual Rides is less than or equal to 500.
- Alternative Hypothesis (H1): The mean daily Casual Rides is greater than 500.
2. Choose the significance level (α): α = 0.10.
3. Perform a one-tailed t-test based on the data collected.
Analysis of the Hypothesis Test:
Centrifugal Bike Rental Company has been actively promoting their casual service, aiming to increase the number of daily Casual Rides. To analyze if the promotion has been effective, we are conducting a hypothesis test to compare the average number of daily Casual Rides over the past six months with the previous average of 500.
By setting up the null hypothesis (H0) as the mean daily Casual Rides being less than or equal to 500, and the alternative hypothesis (H1) as the mean daily Casual Rides being greater than 500, we are testing if there has been a significant increase in the number of Casual Rides.
Using a one-tailed t-test at a significance level of α = 0.10, we will analyze the data to determine if there is enough evidence to reject the null hypothesis in favor of the alternative hypothesis, indicating an increase in the average number of daily Casual Rides at Centrifugal Bike Rental Company.