Question

Suppose you are an expert on the fashion industry and wish to gather information to compare the amount earned per month by models featuring Liz Claiborne attire with those of Calvin Klein. The following is the amount ($000) earned per month by a sample of 15 Claiborne models: $3.5 $5.1 $5.2 $3.6 $5.0 $3.4 $5.3 $6.5 $4.8 $6.3 5.8 4.5 6.3 4.9 4.2 The following is the amount ($000) earned by a sample of 12 Klein models. $4.1 $2.5 $1.2 $3.5 $5.1 $2.3 $6.1 $1.2 $1.5 $1.3 1.8 2.1 Click here for the Excel Data

File Find the degrees of freedom for unequal variance test. (Round down your answer to the nearest whole number.)

State the decision rule for 0.05 significance level:

H0: μClaiborne ≤ μCalvin Klein ; H1: μ Claiborne > μ Calvin Klein. (Round your answer to 3 decimal places.)

Compute the value of the test statistic. (Round your answer to 3 decimal places.)

Is it reasonable to conclude that Claiborne models earn more? Use the 1.30 significance level.

Answer 1

Claiborne Model	Calvin Klien
4.960	2.725	mean
1.003	1.629	std. dev.
15	12	n
	17	df
	2.2350	difference (Claiborne Model - Calvin Klien)
	0.5368	standard error of difference
	0	hypothesized difference
	4.163	t
	.0003	p-value (one-tailed, upper)
	1.1024	confidence interval 95.% lower
	3.3676	confidence interval 95.% upper
	1.1326	margin of error

1.	Find the degrees of freedom for unequal variance test.

Degrees of freedom

=17

2.	State the decision rule for 0.05 significance level:

Reject H0 if t>2.7396 Please try 1.7396 if this is not correct

3.	Compute the value of the test statistic. (Round your answer to 3 decimal places.)

Test statistic=4.163

4.	Is it reasonable to conclude that Claiborne models earn more? Use the 0.05 significance level. Answer: Since test statistic>t, We reject H0. Yes, it is reasonable to conclude that Claiborne models earn more at 0.05 significance level.