Happy Harvest Bread Company needs to determine whether a new advertising campaign has increased its mean daily income. The daily income for 50 randomly selected business days prior to campaign was recorded. After the advertising campaign, the income for another 30 randomly selected days was recorded. Let probability of making a type I error be 1%. Do these data provide sufficient evidence for the management to conclude that the mean income has changed by the advertising campaign? A summary of the results of the two samples is shown below:
Before Campaign |
After Campaign |
|
Sample Mean |
$5,255 |
$5,330 |
Sample Standard Deviation |
$215 |
$238 |
Sample Size |
50 |
30 |
The appropriate null and alternative hypotheses are:
a. |
H0: μ1 - μ2 > 0 Ha: μ1 - μ2 < 0 |
|
b. |
H0: μ1 - μ2 > 0 Ha: μ1 - μ2 0 |
|
c. |
H0: μ1 - μ2 < 0 Ha: μ1 - μ2 > 0 |
|
d. |
H0: μ1 - μ2 = 0 Ha: μ1 - μ2 < 0 |
3 points
QUESTION 17
The significance level of the test is:
.01 |
||
.02 |
||
.025 |
||
.005 |
2 points
QUESTION 18
If we need to make an inference about the difference between the two population means, the appropriate test-statistic has a
a. |
normal distribution. |
|
b. |
Z distribution. |
|
c. |
Z which can be approximated with a t distribution with 50 degrees-of-freedom. |
|
d. |
t distribution with 78 degrees-of-freedom which can be approximated with a Z. |
4 points
QUESTION 19
Calculated value of test statistic for the difference between the two population means is
a. |
-4.94 |
|
b. |
2.32 |
|
c. |
-1.41 |
|
d. |
0.186 |
3 points
QUESTION 20
The critical value for the test statistic is:
a. |
1.645 |
|
b. |
1.96 |
|
c. |
2.326 |
|
d. |
2.576 |
2 points
QUESTION 21
The conclusion that can be reached about the difference between the two mean incomes before and after campaign is:
a. |
The mean income before campaign is higher than the mean income after campaign. |
|
b. |
The mean income before campaign is lower than the mean income after campaign. |
|
c. |
The mean income before campaign is the same as the mean income after campaign. |
|
d. |
There is a difference, the alternative hypothesis is not rejected. |
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