Question

In: Statistics and Probability

You own two small gift shops, one in City A and one in City B. You...

You own two small gift shops, one in City A and one in City B. You are interested in which city spends more on Valentine's day gifts. So you test the claim that the mean amount spent in City A is greater than the mean amount spent in City B

You wish to test the claim that the mean amount spent in City A is greater than the mean amount spent in City B at a significance level of α=0.05α=0.05.     

You obtain the following two samples of data from each city. Each data point is the amount of a Valentine's Day gift purchase.

City A City B
57.4
50.7
60.1
30.4
42.7
53.5
39.1
51.4
59.0
61.4
47.2
61.4
50.0
54.8
39.5
58.2
28.4
26.4
68.7
21.0
22.7
65.4
18.1
71.4
76.8
31.4
29.0
56.2
  1. What is the test statistic for this sample?

    test statistic =  Round to 4 decimal places.
  2. What is the p-value for this sample?

    p-value =  Round to 4 decimal places.
  3. The p-value is...
    • less than (or equal to) αα
    • greater than αα

  4. This test statistic leads to a decision to...
    • reject the null
    • accept the null
    • fail to reject the null

  5. As such, the final conclusion is that...
    • There is sufficient evidence to warrant rejection of the claim that the mean amount spent in City A is greater than the mean amount spent in City B.
    • There is not sufficient evidence to warrant rejection of the claim that the mean amount spent in City A is greater than the mean amount spent in City B.
    • The sample data support the claim that the mean amount spent in City A is greater than the mean amount spent in City B.
    • There is not sufficient sample evidence to support the claim that the mean amount spent in City A is greater than the mean amount spent in City B.

Solutions

Expert Solution


orchestra answered 1 year ago
Next > < Previous

Related Solutions

Cash Budget Khloe Company imports gift items from overseas and sells them to gift shops and...
Cash Budget Khloe Company imports gift items from overseas and sells them to gift shops and department stores throughout the United States. Khloe Company provided the following information: The October 31 balance in the cash account is $54,215. All sales are on account. Sales in September were $1,000,000 and in October were $1,330,000. November sales are expected to be $2,170,000. In Khloe’s experience, 70 percent of sales are collected in the month of sale and 27 percent are collected in...
As a business investment, you are planning to open several donut shops throughout the city of...
As a business investment, you are planning to open several donut shops throughout the city of Riyadh, with potential futu.re expansion plans in other city areas in Saudi Arabia including Jeddah, Dammam, Khobar and Al Hofuf. Your initial plan will offer a wide variety of donuts and assorted beverages (coffee, tea, juices, etc.) Currently, the only competitors you will face in the above mentioned locations are two global organizations, with no local competitors in the market for those locations. Realizing...
Consider a small town with two coffee shops, Star and Buck. If Star’s price is ??...
Consider a small town with two coffee shops, Star and Buck. If Star’s price is ?? per cup of coffee and Buck’s price is ?? per cup of coffee, then their respective monthly sales, ?? hundred cups of coffee and ?? hundred cups of coffee, are given by the following equations: ?? = 5 − ?? + ?? ?? = 15 − ?? + ?? It costs $8 for both Star and Buck to produce a cup of coffee and...
Scenario: As a business investment, you are planning to open several donut shops throughout the city...
Scenario: As a business investment, you are planning to open several donut shops throughout the city of Riyadh, with potential futu.re expansion plans in other city areas in Saudi Arabia including Jeddah, Dammam, Khobar and Al Hofuf. Your initial plan will offer a wide variety of donuts and assorted beverages (coffee, tea, juices, etc.) Currently, the only competitors you will face in the above mentioned locations are two global organizations, with no local competitors in the market for those locations....
You are an associate of the American Coffee Producers Association and operate small coffee shops in...
You are an associate of the American Coffee Producers Association and operate small coffee shops in southern Nevada. The coffee business is quite competitive and small companies must compete with coffee giants like Starbucks. Therefore, it is important that you understand your local market demographics. One demographic you wish to study is whether there are differences in coffee consumption levels among various age groups. Understanding any relationship between age and coffee consumption will help tailor effective promotional issues. You develop...
You are an associate of the American Coffee Producers Association and operate small coffee shops in...
You are an associate of the American Coffee Producers Association and operate small coffee shops in southern Nevada. The coffee business is quite competitive and small companies must compete with coffee giants like Starbucks. Therefore, it is important that you understand your local market demographics. One demographic you wish to study is whether there are differences in coffee consumption levels among various age groups. Understanding any relationship between age and coffee consumption will help tailor effective promotional issues. You develop...
A ski company in Vail owns two ski shops, one on the west side and one...
A ski company in Vail owns two ski shops, one on the west side and one on the east side of Vail. Ski hat sales data (in dollars) for a random sample of 5 Saturdays during the 2004 season showed the following results. Is there a significant difference in sales dollars of hats between the west side and east side stores at the 10 percent level of significance? Saturday Sales Data ($) for Ski Hats Saturday East Side Shop West...
A ski company in Vail owns two ski shops, one on the west side and one...
A ski company in Vail owns two ski shops, one on the west side and one on the east side of Vail. Ski hat sales data (in dollars) for a random sample of 5 Saturdays during the 2004 season showed the following results. Is there a significant difference in sales dollars of hats between the west side and east side stores at the 10 percent level of significance? Saturday Sales Data ($) for Ski Hats Saturday East Side Shop West...
Two shops A and B attract two types of customers: price-sensitive customers, who shop at the...
Two shops A and B attract two types of customers: price-sensitive customers, who shop at the lower-priced shop, and time-sensitive customers, who shop at whichever shop is on their side of the street. A customer of either type purchases on average 10 goods. Assume there are 800 price-sensitive customers and 500 time-sensitive customers buying goods on any given day. The wholesale price the shop pay per good is $3. For simplicity, assume that they can charge $3.50, $4.00, or $4.50...
There are two ice cream shops, A and B, in a touristic town. Each shop needs...
There are two ice cream shops, A and B, in a touristic town. Each shop needs to individually choose the price it charges for a scoop of ice cream, which can be either $2, $4 or $5. Each firm wants to maximize their total revenue from customers via an appropriate choice of price. It is expected that − 8,000 scoops of ice cream are purchased by tourists, who are split evenly between the two shops regardless of the prices charged...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT