Question

In: Statistics and Probability

For the two large newspapers in your city, you are interested in knowing whether there is...

For the two large newspapers in your city, you are interested in knowing whether there is a significant difference in the average number of pages in each dedicated solely to advertising. You randomly select 10 editions of newspaper A and 6 editions of newspaper B (excluding weekend editions). The data follow. Use = 0.01 to test whether there is a significant difference in averages. Assume the number of pages of advertising per edition is normally distributed and the population variances are approximately equal.

A:

18 18
21 15
11 18
18 22
26 18

B:

7 14
11 11
10 6

1. Observed T= ? (Round the intermediate values to 3 decimal places. Round your answer to 2 decimal places.)

2. The decision is to fail to reject the null hypothesis or to reject the null hypothesis?

Solutions

Expert Solution

Values ( A ) Σ ( Xi- X̅ )2 Values ( B ) Σ ( Yi- Y̅ )2
18 0.25 7 8.0276
21 6.25 11 1.3612
11 56.25 10 0.0278
18 0.25 14 17.3614
26 56.25 11 1.3612
18 0.25 6 14.6942
15 12.25 59 42.8334
18 0.25
22 12.25
18 0.25
Total 185 144.5

Mean X̅ = Σ Xi / n
X̅ = 185 / 10 = 18.5
Sample Standard deviation SA = √ ( (Xi - X̅ )2 / n - 1 )
SA = √ ( 144.5 / 10 -1 ) = 4.0069

Mean Y̅ = ΣYi / n
Y̅ = 59 / 6 = 9.8333
Sample Standard deviation SB = √ ( (Yi - Y̅ )2 / n - 1 )
SB = √ ( 42.8334 / 6 -1) = 2.9269

To Test :-

H0 :- µA = µB
H1 :- µA ≠ µB

Test Statistic :-
t = (X̅1 - X̅2) / SP √ ( ( 1 / n1) + (1 / n2))



t = ( 18.5 - 9.8333) / 3.658 √ ( ( 1 / 10) + (1 / 6 ))
t = 4.588


Test Criteria :-
Reject null hypothesis if | t | > t(α/2, n1 + n2 - 2)
t(α/2, n1 + n1 - 2) = t(0.01 /2, 10 + 6 - 2) = 2.977
| t | > t(α/2, n1 + n2 - 2) = 4.5881 > 2.977
Result :- Reject Null Hypothesis

Decision based on P value
P - value = P ( t > 4.5881 ) = 0.0004
Reject null hypothesis if P value < α = 0.01 level of significance
P - value = 0.0004 < 0.01 ,hence we reject null hypothesis
Conclusion :- Reject null hypothesis

Decision

reject the null hypothesis.


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