A company wants to determine whether its consumer product ratings (0−10) have changed from last year to this year. The table below shows the company's product ratings from eight consumers for last year and this year. At α=0.05, is there enough evidence to conclude that the ratings have changed? Assume the samples are random and dependent, and the population is normally distributed.
Rating (last year) 66 77 44 44 66 55 66 88
Rating (this year) 22 88 22 22 33 11 33 88
1) Calculate sd. (Round to three decimals as needed)
2) Calculate the test statistic (Round to three decimals as needed)
3)Decide whether to reject or fail to reject the null hypothesis and interpret the decision in the context of the original claim
Answer)
Ho : u1-u2 = 0
Ha : u1-u2 not equals 0
1)
First we need to find the mean and s.d for last year and this year
Last year
u1 = 63.25
s1 = 15.276
This year
u2 = 39.875
S2 = 30.517
N1 = N2 = 8
2)
Test statistics = (u1-u2)/standard error
Standard error = √{(s1^2/n1)+(s2^2/n2)}
After substitution
Test statistics is = 1.937
3)
As the population s.d is unknown, we will use t distribution to estimate the P-value
Degrees of freedom is = smaller of n1-1, n2-1
= 7
For df 7 and 1.937 test statistics
P-value is = 0.093949
As p-value is greater than the given significance level 0.05
We fail to reject the null hypothesis
So, we do not have enough evidence to support the claim that the ratings have changed
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