Please explain what the t-test results determine below: are the new customers growing faster than the old? Are the new customers spending less or more than the old customers?
|New Customer||Old Customer|
|Hypothesized Mean Difference||0|
|t Critical one-tail||1.64500427|
|t Critical two-tail||1.960198519|
Two sample t test for equal variance test:
(Spending more or less)
The degree of freedom= 10116
Pooled variance= 13918.16209
t test value= 26.0378387
P-value(two tail)= 0.0000
The test statistic is significant and rejects H0. There is sufficient evidence to support that the new customers and old customer sample means are statistically different.
The test statistic value is positive. so, we can conlude that the new customers are spending more money than old customers.
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