Question

In: Statistics and Probability

My friend, Bob, believes that his supermarket's prices are lower than mine. We construct a list...

My friend, Bob, believes that his supermarket's prices are lower than mine. We construct a list of identical items and purchase them at our respective stores every week for two months. Then Bob wants to know if his hypothesis is supported.

Solutions

Expert Solution

GIVEN:

Bob believes his supermarket's prices are lower than his friend.

A list of identical items are constructed and purchased at their respective stores every week for two months.

TO FIND:

Bob wants to know if his hypothesis is supported.

SOLUTION:

From the claim "Bob believes his supermarket's prices are lower than his friend",

Bob has a directional hypothesis. A directional hypothesis is a one-tailed hypothesis that states the direction of the difference or relationship. Since the claim is that "Bob believes his supermarket's prices are lower than his friend", it is a left tailed directional hypothesis.

Since a list of identical items are constructed and purchased at their respective stores every week for two months, it is considered as matched pair sample since same set of items were purchased for two different months.

Thus matched-pair t-test (or paired t-test or paired samples t-test or dependent t-test) is used when the data from the two groups can be presented in pairs, for example where the same people are being measured in before-and-after comparison or when the group is given two different tests at different times.

Thus Bob should do a matched t test to test the hypothesis "Bob believes his supermarket's prices are lower than his friend" using matched pair sample of items purchased for two different months.

Thus Bob has a directional hypothesis and should do a matched t test. Hence Bob's hypothesis is supported.


Related Solutions

A friend of mine believes that the average GPA at KSU is equal to 3.0. In...
A friend of mine believes that the average GPA at KSU is equal to 3.0. In order to test whether he/she is right, I collect some information from the data. Specifically, I use 100 KSU students to form a sample and find that their sample average GPA is equal to 3.3. In addition, suppose that I also know the population standard deviation of GPA at KSU is 1.5. I decide to use 0.05 as the level of significance for my...
Bob lives in Massachusetts and his good friend Bill lives in Alabama. Bob and Bill both...
Bob lives in Massachusetts and his good friend Bill lives in Alabama. Bob and Bill both suffer from the same complicated kidney disease. However, Bob’s treat costs $50,000/year while Bill’s cost $100,000 per year. What are the possible explanations for these differences? Evaluate these possibilities and report which explanations are most likely.
Your friend Bob owns a 2019 Chevrolet Corvette. Your friend Bobnever lets you drive his...
Your friend Bob owns a 2019 Chevrolet Corvette. Your friend Bob never lets you drive his Corvette. Your friend Bob, does however, go out of town a lot. One day, Bob gives you a call and asks if you can drive him to Quincy Airport. Bob even agrees to let you drive the Corvette to take him to the airport. Wanting to get behind the wheel of Bob’s 2013 Corvette, you agree to drive Bob to the airport. The day...
A friend of mine is giving a dinner party. His current wine supply includes 12 bottles...
A friend of mine is giving a dinner party. His current wine supply includes 12 bottles of zinfandel, 8 of merlot, and 10 of cabernet (he only drinks red wine), all from different wineries. (a) If he wants to serve 3 bottles of zinfandel and serving order is important, how many ways are there to do this? ways (b) If 6 bottles of wine are to be randomly selected from the 30 for serving, how many ways are there to...
Trade in the presence of external scale economies leads to prices that are lower than the...
Trade in the presence of external scale economies leads to prices that are lower than the prices in only one of the trading partners before trade. True or False? Justify your answer with an appropriate diagram
A researcher believes that community B has a lower income than community A. Forty people are...
A researcher believes that community B has a lower income than community A. Forty people are surveyed in each of the two communities regarding their income. In place A, the mean among the 40 individuals is 62 (given in thousands; you can ignore the ‘thousands’ and just use ‘61’), and the variance is 95; in place B, the mean among the 40 surveyed is 59, and the variance is 100.   Test the null hypothesis that the two communities have equal...
Bob, who is a close friend, has decided to start his own consulting firm. He has...
Bob, who is a close friend, has decided to start his own consulting firm. He has received conflicting information regarding the best business structure to reduce his tax liability. He will be the only employee; however, he is willing to consider creating an S-Corporation. Compare and contrast the benefits of Corporations, LLCs and S-Corps and make a recommendation regarding which would be the most advantageous for Bob. Defend your position. Please provide me some additional information that is not already...
In no more than 300 words: Why does Singer argue that we are worse than Bob...
In no more than 300 words: Why does Singer argue that we are worse than Bob in his essay “The Singer Solution to World Poverty”?
2. A women’s group believes that women are offered lower starting salaries than men applying for...
2. A women’s group believes that women are offered lower starting salaries than men applying for similar jobs. To test this claim, the group sends 10 women and 10 men to interviews for similar positions at various companies. The women were offered a mean starting salary 0f $29,500 with a standard deviation of $1,100, The men were offered a mean starting salary of $30,500 with standard deviation of $950. Assume that the population standard deviations are different and test the...
3. A researcher believes that community B has a lower income than community A. Forty people...
3. A researcher believes that community B has a lower income than community A. Forty people are surveyed in each of the two communities regarding their income. In place A, the mean among the 40 individuals is 62 (given in thousands; you can ignore the ‘thousands’ and just use ‘61’), and the variance is 95; in place B, the mean among the 40 surveyed is 59, and the variance is 100.   Test the null hypothesis that the two communities have...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT