TOMAS CLAUDIO COLLEGES

Morong, Rizal

GRADUATE STUDIES PROGRAM

BQTR 202 Activity 5 T-TEST: Testing the Difference Between Two Means

Name: ____________________________________________ Date: ____________________

Schedule: _________________________________________

Problem:

A budget head for SSS Sales Inc. would like to compare the daily travel expenses for the sales
staff and the audit staff. He collected the following sample information.

Sales Staff 105 120 140 160 100 170 160 140 130 160 180 190
Audit Staff 130 50 90 80 70 125 180 80 110

At 0.05 significance level, can he conclude that the mean daily expenses of sales staff are greater than
the audit staff.

Solution:

Using the DATA ANALYSIS TOOL PACK, find the if the daily expenses of sales staff are greater than the
audit staff.

Using Independent T-test

Select t-Test: Two Sample

Assuming Equal Variances then
click Ok button

1. Click cells A1 to M1

2. Click cells A2 to J2

3. Check Labels

4. Click Output range:

- Select cell O1

5. Click Ok
Step 1. Formulate hypothesis

Ho: ________________________________________________________________________
________________________________________________________________________

Ha: ________________________________________________________________________
________________________________________________________________________

Step 2. Level of Significance: ______%, ________ tailed test p-value = __________

t-Test: Paired Two Sample for Means

Sales Staff Audit Staff
Mean
Observations
t Stat
P(T<=t) one-tail
P(T<=t) two-tail
Standard Deviation

Step 3. Decision Rule: Reject Ho if p-value ( ___________ ) ≤ α (0.05)

Step 4. Decision: Reject / Accept Ho because p-value ( ___________ ) < > ≤ ≥ α (0.05)

Step 5. Conclusion: ___________________________________________________________

___________________________________________________________________________

Table 1

Result of the t-test in the Significant Difference on the Daily Travel

Expenses of the Sales Staff and The Audit Staff.

Verbal
Staff N Mean SD t-value p-value Decision
Interpretation
Sales Staff

Audit Staff
Answer:

5-Step Solution
Step 1. Formulate hypothesis
H0: µ1 ≤ µ2
(The daily travel allowance of sales staff is not greater than the audit staff)
H1: µ1 > µ2
(The daily travel allowance of sales staff is greater than the audit staff)

Step 2. Level of Significance: 5%, one tailed test p-value = 0.004

t-Test: Two-Sample Assuming Equal Variances

Sales Staff Audit Staff

Mean 146.25 101.6666667
Variance 823.2954545 1537.5
Observations 12 9
Pooled Variance 1124.013158
Hypothesized Mean Difference 0
df 19
t Stat 3.015706477
P(T<=t) one-tail 0.003554987
t Critical one-tail 1.729132812
P(T<=t) two-tail 0.007109974
t Critical two-tail 2.093024054
standard deviation 28.69312556 39.21096785
Step 3. Decision Rule:
Reject Ho if p-value ≤ α (0.05)
Step 4. Decision:
Reject Ho, since the computed p-value (0.004) is less than the level of significance (α=0.05, the
statistical decision is to reject the null hypothesis.
Step 5. Conclusion:
There is enough evidence to support the claim that the daily travel expense of sales staff is
greater than the audit staff.

Table 1
Result of the t-test in the Significant Difference on the Daily Travel
Expenses of the Sales Staff and The Audit Staff.

Verbal
Staff N Mean SD t-value p-value Decision
Interpretation
Sales Staff 12 146.25 28.69
3.016 0.004 Reject Ho Significant
Audit Staff 8 101.67 39.21