Explain the difference between ports A and C. in both parts we are asked whether

Question

Explain the difference between ports A and C. in both parts we are asked whether or not there is evidence that the population mean was over $300. in part A: x(bar) = $315.40; s = $43.2; Sample size = 25 in part C: x(bar) = $315.40; s = $75; Sample size = 25 the larger mean adds uncertainty in the sample. the sample may have had some outliers. the smaller mean adds uncertainty in the sample. the sample may have had some outliers. the larger standard deviation adds uncertainty in the sample. the sample may have had some outliers. the smaller standard deviation adds uncertainty in the sample. the sample may have had some outliers.

Explanation / Answer

For A:

n=25
s=43.2
xbar = 315.40

For C:

n=25
s=75
xbar = 315.40

Option C is the right explnation. C' s os 75> 43.2 which means that the larger deviation adds uncertainity in the sample. The sample may have had sme outliers
So, t = (315.4-300)/(43.2/sqrt(25)) = 1.782

df = n-1=25-1=24
Critical t value form table is 2.064 which is more than 1.782
So, dont reject null hypothesis

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