Question

Salary information regarding employees of two retail chains s is shown below.

	Store 1	Store 2
Sample Size	35	38
Sample Mean Salary (in 1,000)	45.6	40.1
Sample Standard Deviation	12.5	10.5

1.   What is the null and alternative hypothesis if we want to determine whether the mean salary of employees of the two retail chains is different? (2 Points)

2.   Calculate the t statistic (2 Points)

3.   Using a level of significance of 0.05, what is the rejection rule for this test using the critical value approach? The degrees of freedom (df) for this test has been calculated and is equal to 66. (2 Points)

4.   Based on the above, what is the conclusion of this statistical test? (2 Points)

Show all steps please

Answer 1

Solution1:

Ho:

Ha:

alpha=0.05

Solution-2:

t=x1bar-xbar/sqrt(s1^2/n1+s2^2/n2)

=(45.6-40.1)/sqrt(12.5^2/35+10.5^2/38)

t=2.027

Solution-3"

df=66

t crit in excel

=T.INV.2T(0.05,66)

=1.996564

rejection region:t<-1.996564 or t>1.996564

t stat =2.027>1.996564

Reject Ho

Accept Ha.

Solution-4:

Conclusion:

There is sufficient statistical evidence at 5% level of significance to conclude that he mean salary of employees of the two retail chains is different