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In: Statistics and Probability

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 Side Shop
1 572 590
2 440 784
3 613 624
4 550 530
5 459 570

(b) State the decision rule for a 5 percent level of significance. (Round your answers to 3 decimal places.)

Reject the null hypothesis if tcalc < ( ) or tcalc > ( ).

(c-1) Find the test statistic tcalc. (Round your answer to 2 decimal places. A negative value should be indicated by a minus sign.)

tcalc ( )

Solutions

Expert Solution

East Side Shop
( X )		 West Side Shop
( Y )
572 2043.04 590 876.16
440 7534.24 784 27027.36
613 7430.44 624 19.36
550 538.24 530 8028.16
459 4596.84 570 2460.16
Total 2634 22142.8 3098 38411.2







Let   :- Average sales  on the east side

:-   Average sales  on the west side

To Test :-

H0 :-  

H1 :-

Test Statistic :-


t = -1.6865   - 1.69


Test Criteria :-
Reject null hypothesis if


DF = 7


Result :- Fail to Reject Null Hypothesis

Conclusion :- Accept Null Hypothesis

There is no significant difference in sales between the west side and east side stores at the 10 percent level of significance.

(b) State the decision rule for a 5 percent level of significance

Test Criteria :-
Reject null hypothesis if


DF = 7


Result :- Fail to Reject Null Hypothesis

There is no significant difference in sales between the west side and east side stores at the 10 percent level of significance.

orchestra answered 1 year ago
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