Question

A random sample found that tourists in Chicago spent an average of $2860 per week, with...

A random sample found that tourists in Chicago spent an average of $2860 per week, with a standard deviation of $126. A separate random sample found that tourists in Miami spent an average of $2935 per week, with a standard deviation of $138.

The sample sizes are 89 for Chicago and 64 for Miami. Suppose that you want to find out if there is any difference between the average expenditures of all of the tourists who visit the two cities. Test this hypothesis using a significance level (α) of 0.05.

a. Formally write the hypotheses.
b. Determine the degrees of freedom for this test.
c. Calculate the test statistic.
d. Compute the p-value. What is your conclusion? Show your reasoning.
e. Find the critical value(s). What is your conclusion? Show your reasoning.

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