We are comparing the average student debt between two states. We took a random s

Question

We are comparing the average student debt between two states. We took a random sample from each state. In state 1, the sample mean was $42,000 for a sample of size 48. In state 2, the sample mean was $38,000 for a sample of size 50. The population standard deviations of student debts for the two states were $16,000 and $15,000 respectively. We want to test the following hypotheses: H0: mu1 = mu2; H1: mu1 is not equal to mu2 We will use a significance level of 1%. Being a two tailed test, there are two critical values. What is the upper critical value?

Explanation / Answer

Since the population standard deviations are given, we will use z test in this scenario.

Hence,

Upper critical value at 1% level of significance = 2.576 [Rounded off to 3 decimal places]

Related Questions

Navigate

• Browse (All)
• Browse W
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.