A restaurant association says that households in the United States headed by people under the age...

A restaurant association says that households in the United States headed by people under the age of 25 spend less on food away from home than households headed by people ages 55-64. The mean amount spent per year by 32 households headed by people under the age of 25 is $2015 and the sample standard deviation is $113. The mean amount spent by 32 households headed by people ages 55-64 is $2715 and the sample standard deviation is $97. At α = 0.05, can you support the restaurant association’s claim?

Expert Solution

The test hypothesis is

Now, the value of test static can be found out by following formula:

Degrees of freedom on the t-test statistic are n1 + n2 - 2 = 32 + 32 - 2 = 62

This implies that

Since, the t distribution is symmetric about zero, so -t_{0.05, 62}

Since , we reject the null hypothesis H0 in favor of the alternative hypothesis H1 at

orchestra answered 2 years ago

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