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One of the music industry\'s most pressing questions is: Can paid download store

ID: 3221562 • Letter: O

Question

One of the music industry's most pressing questions is: Can paid download stores contend nose-to-nose with free peer-to-peer download services? Data gathered over the last 12 months show Apple's iTunes was used by an average of 1.54 million households with a sample standard deviation of .60 million family units. Over the same 12 months WinMX (a no-cost P2P download service) was used by an average of 2.17 million families with a sample standard deviation of .31 million. Assume the population standard deviations are not the same.

1.

Find the degrees of freedom for unequal variance test. (Round down your answer to nearest whole number.)

  Degrees of freedom_____________________

2

State the decision rule for .05 significance level: H0: A = W; H1: A W . (Negative amounts should be indicated by a minus sign. Round your answer to 3 decimal places.)

  Reject H0 if t < _____________or t >_________________

3.

Compute the value of the test statistic. (Negative amount should be indicated by a minus sign. Round your answer to 2 decimal places.)

  Value of the test statistic________________

One of the music industry's most pressing questions is: Can paid download stores contend nose-to-nose with free peer-to-peer download services? Data gathered over the last 12 months show Apple's iTunes was used by an average of 1.54 million households with a sample standard deviation of .60 million family units. Over the same 12 months WinMX (a no-cost P2P download service) was used by an average of 2.17 million families with a sample standard deviation of .31 million. Assume the population standard deviations are not the same.

Explanation / Answer

n1 12

x1bar 1.54

s1 0.60

n2 12

x2bar 2.17

s2 0.31

here n1 and n2 are sample sizes

x1bar and x2bar are sample means

s1 and s2 are sample variance