Question

Split the Bill?

A study compared the cost of restaurant meals when people pay individually versus splitting the bill as a group. In the experiment half of the people were told they would each be responsible for individual meals costs and the other half were told the cost would be split equally among the six people at the table. The data in SplitBill includes the cost of what each person ordered (in Israeli shekels) and the payment method (Individual or Split). Some summary statistics are provided in the table below and both distributions are reasonably bell-shaped. Use this information to test (at a 5%level) if there is evidence that the mean cost is higher when people split the bill.

Payment	Sample size	Mean	Std. dev.
Individual	24	37.29	12.54
Split	24	50.92	14.33

Table 1: Cost of meals by payment type

Let group 1 and group 2 be the costs in the Individual and Split situations, respectively.

a.) State the null and alternative hypotheses. Your answer should be an expression composed of symbols: =,≠,<,>,μ,μ1,μ2,p,p1,p2,ρ,p^,p^1,p^2,r.

H0: vs Ha:

b.) Calculate the relevant test statistic.

Round your answer to two decimal places.

t-statistic⁢=

c.) Find the p-value.

Round your answer to four decimal places.

p-value =

Answer 1