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1. A sample of 8 customers from internet provider A was obtained and their ages

ID: 3263564 • Letter: 1

Question

1. A sample of 8 customers from internet provider A was obtained and their ages recorded below. A sample of 10 customers from internet provider B and their ages were also obtained. Using the .05 level of significance, is it possible to conclude that the average age of provider A customers is significantly larger than the average age of provider B? The results of the test of variances and means (using two different methods) are presented below. Using alpha = .05, please answer the questions below. the .05 level of significance, is it possible to conclude that the average age of provider A customers is significantly larger than the average age of provider B? The results of the test of variances and means (using two different methods) are presented below. Using alpha = .05, please answer the questions below.

Ages of Customers:        Provider A        Provider B                    F Test Two Sample for Variances

65                     53 Provider B        Provider A

75                     59                                 Mean                 45.9                  58.375

63                     27                                 Variance 146.9889           88.839

55                     58                                 Observations       10                     8         

57                     51                                 df 9                      7

49                     45                                 F                      1.654548

45                     53                                 P value              0.2597

58                     26                                 F Critical           4.823221

51                                

36                                

Mean                             58.375               45.9

Median                          57.5                  51

Standard Deviation          9.425459           12.1239

Sample Variance             88.83929           146.9889

t-Test:   Two Sample Assuming Equal Variances             t-Test: Two Sample Assuming Unequal Variances

                        Provider A        Provider B                                            Provider A Provider B

Mean                 58.375               45.9                              Mean                 58.375               45.9

Variance 88.83929           146.9889                       Variance 88.83929           146.9889

Observations       8                      10                                 Observations       8                      10

Pooled Variance 121.5484

Hypothesized mean difference         0 Hypothesized Mean difference         0

Df                                             16 Df                                              16

t-Stat                                         2.385474 t-Stat                                         2.455832

P(T<=t) one-tail                          0.014883 P(T<=t) one tail                          0.012934   

t Critical one-tail                         1.745884 t Critical one-tail                         1.745884

P(T<=t) two tail                         0.029767 P(T<=t) two tail                         0.025869

t Critical two tail                         2.119905 t Critical two tail                         2.119905

You must conduct two tests with this problem. First use the F-test to determine if your variances are equal or not equal. (Parts a – g)

Then conduct the appropriate test of means.   The output s provided for both the equal variance t-test and the unequal variance t-test. You must decide which test is appropriate based on your answer to questions f and g. The test of means begins with question h and goes through question k.

a.          What statistical test must you use before you can test the means? _____________________

b.         What are your null and alternative hypotheses for that first test?

____________________________________________________________________

c.          What is your calculated test statistic? _________________

d.           What is your critical value? ____________

e.          What is your decision rule? ________________________________________________________

f.          What is your conclusion? ______________________________________

g.         Which test of means should be used? ______________________________

h.         State your null and alternative hypotheses for testing the means_________________________________________

i.          What is your calculated test statistic?_____________________

j           What is your decision rule? ______________________________________________________

k.         What can you conclude about the average ages of the two internet providers? ____________________________________________________________________________________

Explanation / Answer

a. What statistical test must you use before you can test the means?
Answer: F-test for Variances

b. What are your null and alternative hypotheses for that first test?
H0: There is no significance difference between the variance of Provider A and Provider B
H1: There is significance difference between the variance of Provider A and Provider B

c. What is your calculated test statistic?
Answer :F - 146.9889/ 88.839= 1.6545

d. What is your critical value?
Answer: F-Critical value = 4.823221

e. What is your decision rule?
Answer: Reject H0 if F value > F-critical value

Here F value < F critical value, so we accept H0 There is no significance difference between the variance of Provider A and Provider B

f. What is your conclusion?
Answer: we have to use T-test for equal variance

h. State your null and alternative hypotheses for testing the means
Answer:
H0: the average age of provider A customers is not significantly larger than the average age of provider B
H1: the average age of provider A customers is significantly larger than the average age of provider B

i. What is your calculated test statistic?
Answer: t-stat = 2.385474
j What is your decision rule?
Answer: Reject H0 if t-stat >t - critical one -tail (1.745884)

k. What can you conclude about the average ages of the two internet providers?
Here t value > t - Critical value one-tail, so we reject H0
thus we conclude that the average age of provider A customers is significantly larger than the average age of provider B