Question

In: Statistics and Probability

Hypothesis Testing Using the second expenditure variable (Housing) (with socioeconomic variable (Income) as the grouping variable...

Hypothesis Testing

Using the second expenditure variable (Housing) (with socioeconomic variable (Income) as the grouping variable for making two groups), select and run the appropriate method for making decisions about two parameters relative to observed statistics. Format follows Kozak outline:

(not sure what data is needed but here is what I already have)

expenditure variable, Housing: (mean) 21,228.93 range= 8.852

Socioeconomic variable: income (mean) 99,861.26 SD- 6,623.82

Research question:

Two sample hypothesis test that will be used and rationale for using it:

State the random variable and parameters in words:

State null and alternative hypotheses and level of signifcance:

Method used to analyze data:

Find the sample statistic, test statistic, and P-value:

Conclusion regarding whether or not to reject the null hypothesis:

Solutions

Expert Solution

State the random variable and parameters in words,

1) expenditure variable

parameter - Mean(expenditure variable) = mu1

2) Socioeconomic variable

parameter - Mean(Socioeconomic variable) = mu2

State null and alternative hypotheses and level of signifcance

Here we want to test following set of hypothesis,

H0: mu1 = mu2

H1: mu1 is not same as mu2

Here only for one variable you have given SD and for one you provided Range.

Hence we compute sd with range rule for the first variable,

Hence, SD for expenditure variable = range for expenditure variable/4 = 8.852/4 = 2.213

Also you have not provided sample size so i assume, 100 in both cases

Test procedure,

Conclusion - We conclude that the two parameters are not related and they are statistically siginificanlty different


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