Problem: The null and alternate hypotheses are: H0: 1 =2 H1: 1 ?

2 A random sample of 15 obs

Data:
n1
n2
x1-bar
x2-bar
s1
s2

15
17
350
342
12
15

(1) Formulate the hypotheses:

Ho: 1 = 2
Ha: 1 2
(2) Decide the test statistic and the level of significance:
t (Two-tailed), =
Degrees of freedom =
Lower Critical t- score =
Upper Crtical t- score =

0.1
30
-1.6973
1.6973

(3) State the decision Rule:

Reject Ho if |t| >

1.6973

(4) Calculate the value of test statistic:

Pooled SD, s = [{(n1 - 1) s1^2 + (n2 - 1) s2^2} / (n1 + n2 - 2)] = 13.6821
SE = s * {(1 /n1) + (1 /n2)} =
4.8468
t = (x1-bar -x2-bar)/SE =
1.6506
(5) Compare with the critical value and make a decision:
Since

1.6506

<

1.6973

we fail to reject Ho

Decision: There is no sufficient evidence that the population means are different.
(6) Calculate the p- value for the test and interpret it:
p- value =

0.1093

This is the probability of rejecting a true null hypothesis.

1 ?2 A random sample of 15 observations from the first population revealed a sample mean of 350 and a sam

we fail to reject Ho

n means are different.

null hypothesis.

ple mean of 350 and a sample standard deviation of 12. A random sample of 17 observations from the second p

ns from the second population revealed a sample mean of 342 and a sample standard deviation of 15. At the .1

ation of 15. At the .10 significance level, is there a difference in the population means? Notice: use the five-step

ice: use the five-step hypothesis testing procedure for the following exercises

Problem: Ms. Lisa Monnin is the budget director for Nexus Media, Inc. She would like to compare the
Data:
n1
n2
x1-bar
x2-bar
s1
s2

Sales Staff
131
135
146
165
136
142

6
7
142.50
130.29
12.24
15.79

(1) Formulate the hypotheses:

x-bar =
s=

Ha: 1 2
Ha: 1 > 2
(2) Decide the test statistic and the level of significance:
t (Right-tailed), =
Degrees of freedom =
Critical t- score =

0.1
11
1.3634

(3) State the decision Rule:

Reject Ho if t >

1.3634

(4) Calculate the value of test statistic:

Pooled SD, s = [{(n1 - 1) s1^2 + (n2 - 1) s2^2} / (n1 + n2 - 2)] = 14.28581
SE = s * {(1 /n1) + (1 /n2)} =
7.9479
t = (x1-bar -x2-bar)/SE =
1.5368
(5) Compare with the critical value and make a decision:
Since

1.5368

>

1.3634

we reject Ho and accept Ha

Decision: It appears that the expenses are greater for the Sales staff.
(6) Calculate the p- value for the test and interpret it:
p- value =

0.0763

This is the probability of rejecting a true null hypothesis.

142.50
12.24

d like to compare the daily travel expenses for the sales staff and the audit staff. She collected the following sam
Audit Staff
130
102
129
143
149
120
139
130.29
15.79

She collected the following sample information. Sales ($) 131 135 146 165 136 142 Audit ($) 130 102 129 143 1

130

102

$) 130 102 129 143 149 120 139 At the .10 significance level, can she conclude that the mean daily expenses a

129

143

149

120

139

ean daily expenses are greater for the sales staff than the audit staff? What is the p-value?

Problem:

The management of Discount Furniture, a chain of discount furniture stores in the Northeast, designed

Before
320
290
421
510
210
401
625
560
360
431
506
505

After d = After - Before

340
20
285
-5
475
54
510
0
210
0
500
99
631
6
560
0
365
5
431
0
525
19
619
114
d-bar =
s=

Data:
n = n1 = n2
d-bar
s (of d)

26
40.95

12
26.00
40.9523

(1) Formulate the hypotheses:

Ho: d-bar
Ha: d-bar >

0
0

(2) Decide the test statistic and the level of significance:

t (Right-tailed)), =
Degrees of freedom =
Critical t- score =

0.05
11
1.7959

(3) State the decision Rule:

Reject Ho if t >

1.7959

(4) Calculate the value of test statistic:

SE = s/n =
t = d-bar/SE =

11.8219
2.1993

(5) Compare with the critical value and make a decision:

Since

2.1993

>

1.7959 we reject Ho and accept Ha

Decision: It appears that there has been a significant increase in the income.
(6) Calculate the p- value for the test and interpret it:
p- value =

0.0501

This is the probability of rejecting a true null hypothesis.

count furniture stores in the Northeast, designed an incentive plan for salespeople. To evaluate this innovative plan, 12 salespeople wer

reject Ho and accept Ha

ncrease in the income.

g a true null hypothesis.

ative plan, 12 salespeople were selected at random, and their weekly incomes before and after the plan were recorded. Salesperson Bef

ecorded. Salesperson Before After Sid Malone $320 $340 Carol Quick 290 285 Tom Jackson 421 475 Andy Jones 510 510 Jean Sloan 21

s 510 510 Jean Sloan 210 210 Jack Walker 401 500 Peg Mancuso 625 631 Anita Loma 560 560 John Cuso 360 365 Carl Utz 431 431 A.

365 Carl Utz 431 431 A.S. Kushner 506 525 Fern Lawnton 505 619 Was there a significant increase in the typical salesperson's weekly

ical salesperson's weekly income due to the innovative incentive plan? Use the .05 significance level. Estimate the p-value, and interpre

the p-value, and interpret it.

Problem: Fairfield Homes is developing two parcels near Pigeon Fork, Tennessee. In order to test diff
Data:
n1
n2
x1-bar
x2-bar
s1
s2

75
120
150000
180000
40000
30000

(1) Formulate the hypotheses:

Ho: 1 = 2
Ha: 1 2
(2) Decide the test statistic and the level of significance:
t (Two-tailed), =
Degrees of freedom =
Lower Critical t- score =
Upper Crtical t- score =

0.05
193
-1.9723
1.9723

(3) State the decision Rule:

Reject Ho if |t| >

1.9723

(4) Calculate the value of test statistic:

Pooled SD, s = [{(n1 - 1) s1^2 + (n2 - 1) s2^2} / (n1 + n2 - 2)] =
SE = s * {(1 /n1) + (1 /n2)} =
5031.4211
t = (x1-bar -x2-bar)/SE =
-5.9625

34182

(5) Compare with the critical value and make a decision:

Since

5.9625

>

1.9723

we reject Ho and accept Ha

Decision: It appears that the population means are different.

(6) Calculate the p- value for the test and interpret it:
p- value =

0.0000

This is the probability of rejecting a true null hypothesis.

ork, Tennessee. In order to test different advertising approaches, they use different media to reach potential buy

we reject Ho and accept Ha

null hypothesis.

media to reach potential buyers. The mean annual family income for 75 people making inquiries at the first deve

ries at the first development is $150,000, with a standard deviation of $40,000. A corresponding sample of 120

nding sample of 120 people at the second development had a mean of $180,000, with a standard deviation of $

andard deviation of $30,000. At the .05 significance level, can Fairfield conclude that the population means are

opulation means are different?