Part I Show your work for partial credit) 1. A university survey asked a random

Question

Part I Show your work for partial credit) 1. A university survey asked a random set of out-of state and in-state students how much they were willing to spend for buying a statistics textbook. Can the university conclude, at -0.05, the out-of-state students have a higher willingness to spend compared to in-state students (Use the steps below to carry out a hypothesis test)? In-State Out-State 15 $195 S38 Sample mearn Sample standard deviation $140 $34 Step 1: Identify the specific claim to be tested, and put it in symbolic form [1 Step 2: Give the symbolic form that must be true when the original claim is false (the opposite) I1) Step 3: Show the Ho and Hi hypotheses [1]. Step 4: Select the significance level (a) [1]. Step 5: Identify the statistic relevant to this test and its sampling distribution I1] Step 6: Find the test statistic and critical value(s). Draw a graph and include the test statistic critical value(s), and critical region [5].

Explanation / Answer

Step 1:

Out of state student has higher willingness to spend compared to in state student.

i.e. mean number of out of state students who are willing to spend on buying statistics book is greater than the mean number of in state students who are willing to buy statistics book.

let, µ1 = Population mean of out of state students who are willing to spend on buying statistics book.

µ2 = Population mean of in state students who are willing to spend on buying statistics book.

the claim is  µ1 >  µ2

Step 2:

If the original claim is wrong then the claim which will be true is  µ1 <=  µ2

Step 3:

H0 : µ1 <=  µ2

vs

H1 : µ1 > µ2

Step 4:

Significance level = 0.05

Step 5:

Test statistic = Z

Z =   (195-140)

sqrt { 382/15 + 342/9}

=

3.669023

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---

---

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