value: 10.00 points One of the music industry\'s most pressing questions is: Can

Question

value: 10.00 points 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 1.68 million households with a sample standard deviation of 46 million family units. Over the same 12 months WinMX (a no-cost P2P download service) was used by an average of 2.39 million families with a sample standard deviation of .34 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 .01 significance level: Ho: HA Euwi H1: HA Hw (Negative amounts should be indicated by a minus sign. Round your answer to 3 decimal places.) Reject Ho 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

Explanation / Answer

Part 1:

n1 = 12

s1 = 0.46

n2 = 12

s2 = 0.34

df = [ (n1-1) (n2-1)] / [ ((n2-1)*c^2 ) + ((n2-1)*c2^2)]

c = (s1^2/n1)/[(s1^2/n1)+(s2^2/n2)]

df = 11

Answer: 11

Part 2:

From critical t-table we get at 1% level of significance for 11 degrees of freedom the critical t as (-/+) 3.106.

Answer: Reject Ho if t < -3.106 or t > 3.106

Part 3:

t = (x1 bar – x2 bar)/ sqrt ((s1^2/n1)+(s2^2/n2))

n1 = 12

s1 = 0.46

n2 = 12

s2 = 0.34

x1 bar =1.68

x2 bar = 2.39

t = (1.68 – 2.39)/ sqrt ((0.46^2/12)+(0.34^2/12))

= -4.30

Answer: -4.30

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