Selling prices for 230 diamonds evaluaated by two different diamond ratings agen

Question

Selling prices for 230 diamonds evaluaated by two different diamond ratings agencies (GIA and HRD) were collected and the data was analyzed using the Microsoft Excel Data Anlaysis Toolpak. The following results were generated in Excel inputting alpha .05 in the Excel dialog box. Based on these Microsoft Excel Data Analysis results, if the the hypothesis test is testing "whether the mean retail sales price of GIA is less than the mean retail sales price of HRD," the conclusion of this hypothesis test based on a .05 level of significance: is: Since the decision rule is if z-test statistic greaterthan 1.96. the test statistic -4.46 indicates the null hypothesis should not be rejected at the .05 level of significance, indicating there is not sufficient evidence to suggest the mean retail selling price of GIA is less than the mean retail selling price of HRD. Since the decision rule is if z-test statistic greaterthan 1.645. the test statistic -4.46 indicates the null hypothesis should not be rejected at the .05 level of significance, indicating there is not sufficient evidence to suggest the mean retail selling price of GIA is less than the mean retail selling price of HRD. Since the decision rule is if z-test statistic lessthan -1.96. the test statistic -4.46 indicates the null hypothesis should be rejected at the .05 level of significance, indicating there is sufficient evidence to suggest the mean retail selling price of GIA is less than the mean retail selling price of HRD. Since the decision rule is if z-test statistic lessthan. -1.645. the test statistic -4.46 indicates the null hypothesis should be rejected at the .05 level of significance, indicating there is sufficient evidence to suggest the mean retail selling price of GIA is less than the mean retail selling price of HRD.

Explanation / Answer

Answer to the question)

The claim is: M(GIA) < M(HRD)

Thus it is left tailed test

.

Now if we observe the result , we get to know that

Z statistic = -4.5727

P value (one tailed) = 4.15046E-06 ~ 0.0000041546

The Z critical value is : -1.644

[this value has a minus sign becuase it is a left tailed test

.

Inference:

Critical value approach:

Since the statistic -4.5727 < critical value -1.644 , the statistic falls in the critical region, thus we conclude to reject the null

.

P value approach:

Since the pvalue is 0.0000041546 < alpha 0.05 , thus we conclude to reject the null

.

Thus the correct answer choice is D

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---

---

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