Question

In another study conducted in 2016, the average of monthly salaries of 45 randomly chosen residents in Bordeaux was found to be €3200; the sample standard deviation of the chosen salaries was €600. The suspicion was that the average salary of residents in Paris is lower than the average salary of residents in Bordeaux.

The research team was to conduct a ?-test to test the suspicion. But they had no information on the two population variances. So they first conducted an ?-test at a significance level of 5% to determine if the two population variances are equal or not, assuming that both populations were normal.

Set 1 = Paris; 2 = Bordeaux.

Question 8:

Set up the alternative hypothesis for the ?-test.

Question 9:

In the ?-test, what is the test statistic?

Question 10:

Find the rejection region in the ?-test.

Question 11:

What is the conclusion?

Question 12:

The analyst then conducted an appropriate ?-test at a significance level of 5% to test the suspicion. Set up the alternative hypotheses for the ?-test.

Question 13:

Find the test statistic in the ?-test.

Question 14:

Find the rejection region in the ?-test.

Question 15:

What is the conclusion?

In a study of monthly salary distribution of residents in Paris conducted in year 2015, it was found that the salaries had an average of €2200 (EURO) and a standard deviation of €550.
One years later (in 2016), it was suspected that the average salary had increased. A hypothesis test was conducted at a significance level of 5% to test the suspicion. A random sample of size 64 was chosen with mean of €2385 and standard deviation of €650.

Answer 1