In: Statistics and Probability
Walmart has an interest in monitoring the average
back-to-school spending for grade-school students year to year.
Every year the back-to-school spending data is published by the
National Retail Federation. The following table shows the average
back-to-school spending of households randomly sampled in 2016 and
2017 along with the population standard deviations and sample sizes
for each sample.
2016 2017
Sample mean $606.40 $655.27
Sample size 35 38
Population standard deviation $160 $173
a. State the correct null and alternative hypotheses.
b. Perform a hypothesis test using α = 0.10 to determine if the
average household back-to-school spending in 2016 was different
than it was in 2017.
c. Use Confidence Interval to test this hypotheses