Question

# A cell phone company offers two plans to its subscribers. At the time new subscribers sign...

A cell phone company offers two plans to its subscribers. At the time new subscribers sign up, they are asked to provide some demographic information. The mean yearly income for a sample of 42 subscribers to Plan A is \$55,500 with a standard deviation of \$8,500. This distribution is positively skewed; the coefficient of skewness is not larger. For a sample of 40 subscribers to Plan B, the mean income is \$56,800 with a standard deviation of \$8,700.

At the 0.01 significance level, is it reasonable to conclude the mean income of those selecting Plan B is larger?

a. State the decision rule. (Negative answer should be indicated by a minus sign. Round the final answer to 3 decimal places.)

Reject H0 if t > .

b. Compute the value of the test statistic. (Negative answer should be indicated by a minus sign. Round the final answer to 3 decimal places.)

Value of the test statistic

c. What is your decision regarding the null hypothesis?

(Click to select)  Do not reject  Reject    H0. There is  (Click to select)  not enough  enough  evidence to conclude that the mean income of those selecting Plan B is  (Click to select)  larger  not larger  .

d. What is the p-value? (Round the final answer to 4 decimal places.)

Given data is

For plane A subscribers

sample size is 42