Question

A marketing research firm wishes to compare the prices charged by two supermarket chains—Miller’s and Albert’s. The research firm, using a standardized one-week shopping plan (grocery list), makes identical purchases at 10 of each chain’s stores. The stores for each chain are randomly selected, and all purchases are made during a single week. It is found that the mean and the standard deviation of the shopping expenses at the 10 Miller’s stores are x1¯¯¯¯?=?$122.94 and s1= 1.25. It is also found that the mean and the standard deviation of the shopping expenses at the 10 Albert’s stores are x2¯¯¯¯?=?$124.71 and s2= 2.35.

A) Calculate the value of the test statistic

B)Calculate the critical value

C)A the .10 significance level do we reject or fail to reject?

Answer 1

a)

value of the test statistic =-2.1028

b)

for 0.1 level ,two tail test &13 df, critical t= -/+ 1.771

c)

since test statistic is in critical region , we reject Ho