We wish to test the hypothesis that two types of customer spend the same amount on...

We wish to test the hypothesis that two types of customer spend the same amount on average. From a sample of 40 “Type 1” customers, the average spend is 26.7 with a variance of 64.1, while, from a sample of 50 “Type 2” customers, the average spend is 23.3 with a variance of 55.8. The p-value for the hypothesis test is approximately what?

Solutions

Expert Solution

We wish to test the hypothesis that two types of customer spend the same amount on average.

Therefore, the null and alternative hypotheses are,

H0 : μ1 = μ2

HA : μ1 ≠ μ2

This hypothesis test is a two-tailed test.

Test statistic is,

=> Test statistic = Z = 2.06

p-value

= 2 * P(Z > 2.06)

= 2 * [ 1 - P(Z < 0.6) ]

= 2 * [ 1 - 0.9803 ]

= 2 * 0.0197

= 0.0394

=> p-value = 0.0394

orchestra answered 1 year ago

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