Some studies have shown that in the United States, the difference between men an

Question

Some studies have shown that in the United States, the difference between men and women spending is less than $40 in buying gifts and cards on Valentine’s Day. Suppose a researcher wants to test this hypothesis by randomly sampling 10 women and 9 men with comparable demographic characteristics from various large cities across the United States to be in a study. Each study participant is asked to keep a log beginning one month before Valentine’s Day and record all purchases made for Valentine’s Day during that one-month period.

(1). The average of women and men spending are $75.48 and $110.92 respectively. The sample standard deviation of women and men are $30.51 and $28.79 respectively. Use 1% level of significance to manually determine if, on average, the difference between men and women spending is less than $40. Assume that such spending is normally distributed in the population and that the population variances are equal. What is the statistical decision and business decision?

Explanation / Answer

Usining Minitab:

Two-Sample T-Test and CI

Sample N Mean StDev SE Mean
1 10 75.5 30.5 9.6
2 9 110.9 28.8 9.6

Difference = mu (1) - mu (2)
Estimate for difference: -35.4
99% upper bound for difference: -0.4
T-Test of difference = 40 (vs <): T-Value = -5.53 P-Value = 0.000 DF = 17
Both use Pooled StDev = 29.7130

P-value < 0.01 so we reject the null hypothesis and we conclude that there is significance difference between men and women spending is less than $40 in buying gifts and cards on Valentine’s Day.

Hope this will be helpful. Thanks and God Bless You :-)

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

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