1. Do consumers spend more on a trip to Walmart or Target? Suppose researchers interested in...

1. Do consumers spend more on a trip to Walmart or Target? Suppose researchers interested in this question collected a systematic sample from 85 Walmart customers and 80 Target customers by asking customers for their purchase amount as they left the stores. The data collected are summarized in the table below.

Walmart
Target
sample size
85
80
sample mean
$45
$53
sample std dev
$20
$18

a.   Check the conditions to create a confidence interval for the difference in spending at the two stores.
b.   Create a 95% confidence interval for the difference in spending at the two stores. (Note: We don’t have the full data, so you can use the formulas on page 342 or a program that doesn’t require it.)
c.   Interpret your confidence interval with a sentence.
d.   Your CI from part b does not contain zero. Does that mean the difference in spending at the two stores is statistically significant? Why or why not?

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Expert Solution

milcah answered 9 months ago

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