Term I, 10/11

STAT 101 INTRODUCTORY STATISTICS - GROUPS 2, 3, & 4 Class Exercise 9 Solutions 1. Given that xA = 120, sA = 29.25, nA = 180 and xB = 111, sB = 28.95, nB = 160 We need to assume that the variances of bills in city A and city B are the same and the two samples are independent. But we do not need to make any assumption about the two population distributions. Since the sample sizes of two samples are relatively large, the two sample means are approximately normal by the Central Limit Theorem. The test statistic is therefore close to the t-distribution. H0 : A = B H1 : A = B s2 p (180 1)(29.252 ) + (160 1)(28.952 ) = 847.349068 = (180 1) + (160 1) t = (120 111) 0 847.349068
1 180

= 2.8456
1 160

The rejection region: Reject H0 if t > t0.025,338 = 1.96 (1.9670 to be exact) or t < 1.96 Since t > 1.96, we reject H0 . The data provide sucient evidence to conclude that the two means of monthly electric bills in these two cities are dierent at the 0.05 level of signicance. In fact, mean of monthly electric bills in city A is larger than the mean of monthly electric bills in city B.

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