0.36 points A marketing research firm wishes to compare the prices charged by tw

Question

0.36 points A marketing research firm wishes to compare the prices charged by two supermarket chains Miller's and Albert's. The research firm, using a standardized one-week shopping plan (grocery list), makes identical purchases 10 of each chain's stores. The stores for each chain are randomly selected, and all purchases are made during a single week. It is found that the mean and the standard deviation of the shopping expenses at the 10 Miller's stores are $121.92 and $1.40, respectively. It is also found that the mean and the standard deviation of the shopping expenses at the 10 Albert's stores are $114.81 and $1.84, respectively. Assuming normality, test to see if the corresponding population standard deviations differ by setting equal to 5 s it reasonable o use the equal variances procedure to compare population means? (a) Calculate the value of the test statistic. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Test statistic (b) Calculate the critical value. Round your answer to 2 decimal places.) Critical value (c) At the 0.05 significance level, what it the conclusion? O Reject Ho 9.7318 Fail to reject Ho References eBook & Resources

Explanation / Answer

Sample size is small (n< 30) so we use the test statistic.

Given t-test is two sided so the alpha is 0.05 and degree of freedom (df) = n1+n2-2 = 10+10-2 =18 then critical value is 2.101 .

Decision is Fail to reject null hypothesis (Ho) because test statistic 9.7318 is greater than critical value 2.101.

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