Question

A cell phone company offers two plans to its subscribers. At the time new subscribers sign up, they are asked to provide some demographic information. The mean yearly income for a sample of 42 subscribers to Plan A is $55,500 with a standard deviation of $8,500. This distribution is positively skewed; the coefficient of skewness is not larger. For a sample of 40 subscribers to Plan B, the mean income is $56,800 with a standard deviation of $8,700.

At the 0.01 significance level, is it reasonable to conclude the mean income of those selecting Plan B is larger?

a. State the decision rule. (Negative answer should be indicated by a minus sign. Round the final answer to 3 decimal places.)

Reject H₀ if t > _____ *fill in ___*

b. Compute the value of the test statistic. (Negative answer should be indicated by a minus sign. Round the final answer to 3 decimal places.)

Value of the test statistic _____ *fill in ____*

c. What is your decision regarding the null hypothesis?

click to select (Reject, Do not Reject ) H₀. There is click to select (enough, not enough) evidence to conclude that the mean income of those selecting Plan B is click to select (not larger, larger) *please state all correct answers from each bracket*

d. What is the p-value? (Round the final answer to 4 decimal places.)

____ *fill in __*

Answer 1