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You want to compare grocery prices at Publix and Walmart. To do this you develop

ID: 2946135 • Letter: Y

Question

You want to compare grocery prices at Publix and Walmart. To do this you develop a shopping list of 30 items that are sold in both stores. After pricing these 30 items at both stores you then conduct a hypothesis test to test the null hypothesis that the average price for these items is the same at both stores vs. the alternative hypothesis that the average price is not equal. What test is most appropriate for this situation? The possible answer results are Independent samples t-test or matched pair t-tests. Which one?

Explanation / Answer

Answer is Independent samples T test.

Here , we use two sided independent T test to test the hypothesis.

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