Question

Ms. Lisa Monnin is the budget director for Nexus Media Inc. She would like to compare the daily travel expenses for the sales staff and the audit staff. She collected the following sample information.

Sales ($)	125	137	147	162	136	142
Audit ($)	128	107	130	141	141	108	140

At the 0.025 significance level, can she conclude that the mean daily expenses are greater for the sales staff than the audit staff?

1. State the decision rule. (Round your answer to 3 decimal places.)

2. Compute the pooled estimate of the population variance. (Round your answer to 2 decimal places.)

3. Compute the test statistic. (Round your answer to 3 decimal places.)

Answer 1

a)

decision rule: reject Ho if t >2.201

b)

pooled estimate of the population variance =190.94

c)

test statistic =1.775