Question

Suppose you are an expert on the fashion industry and wish to gather information to compare the amount earned per month by models featuring Liz Claiborne attire with those of Calvin Klein. The following is the amount ($000) earned per month by a sample of 15 Claiborne models:

$6.3	$3.5	$3.5	$3.5	$4.8	$6.5	$6.2	$5.7	$4.2	$5.4
3.9	4.3	5.1	5.6	6.9

The following is the amount ($000) earned by a sample of 12 Klein models.

$3.2	$4.5	$4.1	$5.1	$3.6	$3.4	$3.5	$3.6	$3.1	$2.9
2.8	2.7

  Click here for the Excel Data File

1. Find the degrees of freedom for unequal variance test. (Round down your answer to the nearest whole number.)

2. State the decision rule for 0.01 significance level: H₀: μ_Claiborne ≤ μ_{Calvin Klein} ; H₁: μ _Claiborne > μ _{Calvin Klein}. (Round your answer to 3 decimal places.)

3. Compute the value of the test statistic. (Round your answer to 3 decimal places.)

4. Is it reasonable to conclude that Claiborne models earn more? Use the 2.90 significance level.

Answer 1