A study was conducted to see whether monetary incentives to use less water durin

Question

A study was conducted to see whether monetary incentives to use less water during times of drought had an effect on water usage. Sixty single family homeowners were randomly assigned to one of two groups: 1) monetary incentives and 2) no monetary incentives. At the end of three months, the total amount of water usage for each household, in gallons, was measured.

(a) What would be the appropriate hypothesis test to use to test the claim that monetary incentives reduce water usage?

i. t-test for two independent samples

ii. t-test for dependent samples

iii. z-test for population mean

iv. correlation

(b) Explain the rationale for your selection in (a). Specifically, why would this be the appropriate statistical approach?

Explanation / Answer

(a) Here, The appropriate hypothesis test to use to test the claim that monetary incentives reduce water usage,

(i)z-test for the population mean

(b) This would be the appropriate statistical approach because for comparing the two means group, when sample size(60) >30 then, we will always use the z-test for the population mean. that is for comparing the two means group for the large sample, we will use z-test.

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