During 2011, a company implemented a number of policies aimed at reducing the ag

Question

During 2011, a company implemented a number of policies aimed at reducing the ages of its customers' accounts. In order to assess the effectiveness of these measures, the company randomly selects 10 customer accounts. The average age of each account is determined for the years 2010 and 2011. These data are given in Table 10.4. Assuming that the population of paired differences between the average ages in 2011 and 2010 is normally distributed conduct a comparison with 99% confidence, by answering the following questions (please note: subtract the 2010 account from the 2011 account when conducting the comparison): AccountMean Age (2011) Mean Age (2010) 27 19 40 30 35 24 47 28 2 4 5 6 7 25 31 29 15 21 35 51 18 28 9 10 Step 4 of 5: Based on the p-value and the confidence interval, I would:

Explanation / Answer

The statistical software output for this problem is:

Paired T hypothesis test:
D = 1 - 2 : Mean of the difference between Mean Age (2011) and Mean Age (2010)
H0 : D = 0
HA : D 0
Hypothesis test results:

Hence,

p - value is less than 0.01, we reject Ho that the mean ages for each year were equal.

Option C is correct. [Assuming the order of options as: A B

C D]

Difference Mean Std. Err. DF T-Stat P-value Mean Age (2011) - Mean Age (2010) -7 1.9379256 9 -3.6121098 0.0056

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