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Samples of sales in similar shops in two different US states are taken for a new product with the following

results. Is there any


Assuming the population variances are equal, at 95% confidence level, is there enough evidence to support the claim?

H0: µ1≥µ2
H1: µ1<µ2

The data is normal.


Two different populations, and unaware of means of two populations
The samples are independent of each other.
Assuming equal population variance
There's less than 30 samples each.
How to determine what test to use? This leads us to chose a two sample t test

What kind of tailed test to use?


(Single left, Single right, or Two-tail) Note that this is a 1 tail (left tailed) test because the claim indicates the sales in sta

Data given State A State B


Number of samples (n1 and n2) 12 12
Sample mean (x1 and x2) 44.7 42.8
Variance 53.33 28.20

Significance level α 0.05

Compute the t-statistic

Degrees of freedom (n1+n2-2) 22


Sp 6.385

x̅1-x2̅ 1.917
Sqrt (1/n1+1/n2) 0.408

t =( x1̅ -x2̅ )/Sp*Sqrt(1/n1+1/n2) 0.7353


Determine t critical value

Since this is a left tailed test at an alpha of


5% critical value look up t table
appropriately.
t critical 1.717 Look up in table

Interpret the results


How does t critical compare to the
calculated t statistic?

t critical t statistic
1.717 0.7353

If this is smaller, means


t statistic value not in If this is smaller, means,
rejection region. Hence it is in rejection region.
we fail to reject the Hence we reject the null
null hypothesis hypothesis
Critical value
Rejection region
Left tail test
llowing results. Is there any evidence that sales in state A is less than the state B.
o support the claim?

wo populations

im indicates the sales in state A is less than state B

Sales (Qty) State Sales (Qty)


A State B
57 40
56 28
36 44
48 42
43 44
48 46
44 48
39 41
47 44
42 48
44 46
32 42

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