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In: Statistics and Probability

A craft brewer sells beer in 2 nearby towns. Some months, he sells more in Town...

A craft brewer sells beer in 2 nearby towns. Some months, he sells more in Town 1 & other months he sells more in Town 2. However, he is pretty sure that he usually sells more in Town 1. So, he has set up the following hypothesis test. He has also looked up the sales figures from the last 30 months in both towns and calculated some sample statistics. Those are below too. Use this information to answer/do the following. H0 : μ1 − μ2 ≥ 0 Ha : μ1 − μ2 < 0

Population = n1 = 30 ,x¯1 = $31, 000, σ1 = $5, 000

Poulation= n2 = 30, ¯x2 = $28, 500 , σ2 = $6, 000

(a) Estimate the difference between the two population means. =2500

(b) Provide a 90% confidence interval for this mean difference.

(c) Provide a 95% confidence interval for this mean difference

. (d) Provide a 99% confidence interval for this mean difference.

(e) What is the value of the test statistic (the z -value)?

(f) What is the p-value?

(g) With α = 0.10, do you Reject H0 or Fail to reject H0?

(h) With α = 0.01, do you Reject H0 or Fail to reject H0

Solutions

Expert Solution

orchestra answered 1 year ago
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