Question

I need to determine if men have higher health care costs then women for 1 year. Both groups have 500 people all between the age of 20-40 collected from 10 hospitals and this data was collected from 50 random men and 50 random women. The annual expenses must be added and recorded. I need to post the data that was used to figure the data in excel formatting. The calculation of test statistic and p value is to be calculated and the two tailed p value done as well. I need to show the graph related to the z statistic and the rejection with critical values. Then inference: What is the decision rule. I am lost, and need help determining this. Thank you.

Answer 1

I am not getting ,in exactly which step u lost, So I am giving you detail algorithm for doing this in excel

1. put the data for male and female in two different columns.

2. find variance for each of the column using function =var.s(range of the columns).

3.click on the data tab in menu bar,and click on the data analysis

note : make sure that u have loaded Data Analysis Toolpak.

4. in the box appeared, click on the z test: Two sample for means option.

5. another box will appear, put the column range of the first variable and second variable and in hypothesized mean difference put value 0,since in null hypothesis we are taking men and women need same health care so difference of their mean is 0. put the variances for the the variables that we find out in step 2 and give the significance level also ,by default it is 0.05. for output range select range of excel sheet in which u want your output. and click OK.

6. output will be displayed on excel sheet containing  mean of each of the variable and p value for both one tail and two tail test. if the p value is less than your significance level then reject the hypothesis . otherwise failed to reject.