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¯¯¯¯?=?$123.28x1¯?=?$123.28 and s₁= 1.73. It is also found that the mean and the standard deviation of the shopping expenses at the 10 Albert’s stores are x2¯¯¯¯?=?$119.47x2¯?=?$119.47 and s₂= 1.81.

(a) Calculate the value of the test statistic. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Test statistic          

(b) Calculate the critical value. (Round your answer to 2 decimal places.)

Critical value          

(c) At the 0.02 significance level, what it the conclusion?

	Fail to reject
	Reject

Answer 1