Fairfield Homes is developing two parcels near Fork, In order to test advertisin
ID: 3221612 • Letter: F
Question
Fairfield Homes is developing two parcels near Fork, In order to test advertising approaches, it uses different media to roach potential buyers. The mean annual family income for 20 people making inquiries at the first development is $164,000, with a standard deviation of $42,000. A corresponding sample of 28 people at the second development had a mean of $172,000, with a standard deviation of $30,000. Assume the population standard deviations are the same. State the decision rule for.02 significance level: H_0: mu_1 = mu_2: H_1:mu_1 notequalto mu_2 (Negative amounts should be indicated by a minus sign. Round your answers to 3 decimal places.) Compute the value of the test statistic. (Negative amount should be indicated by a minus sign. Round your answer to decimal places.) At the.02 significance level, can Fairfield conclude that the population means are different?Explanation / Answer
1)
-2.41 and 2.41.
2)
H0: 1 - 2 = 0 i.e. (1 = 2)
H1: 1 - 2 0 i.e. (1 2)
Assuming population variances are equal, we would have to calculate pooled-variance t-Test
Sp^2= (n1-1)S1^2+(n2-1)S2^2/(n1-1)+(n2-1)
= (20-1)*42000^2+(28-1)*30000^2/19+27
= 33516000000+24300000000/46
=125686956565.22
tSTAT=(X1-X2)-(µ1-µ2)/Sp^2(1/n1+1/n2)
=(164000-172000)-0/125686956565.22 (1/20+1/28)
=-8000/103793.87
=-0.077
3)
tCRIT is +-2.41 and hence reject the null hypothesis since tSTAT does not fall within the rejection region. Cannot conclude that population means are different.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.