In: Economics
a phone manufacturer want to compete in the touch screen market. Management understands that the leading product has a less than desirable battery life. They aim to compete with a new touch screen phone that is guaranteed to have a battery more that two hours longer than the leading product. A recent sample of 109 units of the leading product provides a mean battery life of 5 hours and 51 minutes with a standard deviation of 42 minutes. A similar analysis of 90 units of the new product results in a mean battery life of 8 hours and 48 minutes and a standard deviation of 68 minutes. It is not reasonable to assume that the population variances of the two products are equal.
a. Set up the hypothesis to test if the new product has a battery life more than 2 hours longer than the leading product.
b-1 Calculate the value of the test statistic