A national computer retailer believes that the average sales are greater for sal

Question

A national computer retailer believes that the average sales are greater for salespersons with a college degree. A random sample of 33 salespersons with a degree had an average weekly sale of $3433 last year, while 35 salespersons without a college degree averaged $3277 in weekly sales. The standard deviations were $468 and $642 respectively. Is there evidence at the 5% level to support the retailer's belief?
Select the [p-value, Decision to Reject (RH0) or Failure to Reject (FRH0)].  

a) [p-value = 0.015, FRH0]

b) [p-value = 0.015, RH0]

c) [p-value = 0.065, RH0]

d) [p-value = 0.129, RH0]

e) [p-value = 0.129, FRH0]

Explanation / Answer

Ans:

standard error=SQRT((468^2/33)+(642^2/35))=135.695

Test statistic:

t=(3433-3277)/135.695=1.150

df=33-1=32 (we consider smaller of n1-1 or n2-1)

p-value=tdist(1.150,32,1)=0.129

As,p-value>0.05,we fail to reject null hypothesis.

There is not sufficient evidence to support the retailer's belief that the average sales are greater for salespersons with a college degree.

Option e) is correct(p-value=0.129,fail to reject H0)

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