c) Test whether the mean tax rate for females differs from that of males at the
alpha=0.10 level of significance. Determine the null and alternative hypotheses for this test. Let μm represent the mean income tax rate for males and let μF represent the mean income tax rate for females.
Upper H0: μM = μF
versus
Upper H1: μM ≠ μF
Find t0 the test statistic for this hypothesis test.
Gender Tax Rate Gender Tax
Rate
Female 10 Male 15
Female 10 Male 20
Female 4 Male 10
Female 19 Male 10
Female 20 Male 17
Female 15 Male 2
Female 10 Male 1
Female 15 Male 15
Female 3 Male 3
Female 5 Male 8
Female 23 Male 15
Female 10 Male 5
Female 0 Male 16
Female 20 Male 34
Female 10 Male 10
Female 0 Male 15
Female 7 Male 2
Female 20 Male 0
Female 14 Male 4
Female 14 Male 5
Female 20 Male 15
Female 15 Male 6
Female 9 Male 10
Female 15 Male 5
Female 5 Male 10
Female 14 Male 22
Female 15 Male 15
Female 5 Male 17
Female 18 Male 8
Female 25 Male 10
Using Excel, go to Data, select Data Analysis, choose t-Test: Two-Sample Assuming Unequal Variances at alpha = 0.1.
Female | Male | |
Mean | 12.33333 | 10.83333 |
Variance | 45.47126 | 54.35057 |
Observations | 30 | 30 |
Hypothesized Mean Difference | 0 | |
df | 58 | |
t Stat | 0.822317 | |
P(T<=t) one-tail | 0.207132 | |
t Critical one-tail | 1.296319 | |
P(T<=t) two-tail | 0.414265 | |
t Critical two-tail | 1.671553 |
H0: μM = μF
H1: μM ≠ μF
Test statistic = 0.822
p-value = 0.414
Since p-value is more than 0.1, we do not reject the null hypothesis and conclude that μM = μF
So, mean tax rate for females does not differe from that of males.
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