Question

# Please explain what the t-test results determine below: are the new customers growing faster than the...

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 Mean 265.9284611 204.5386019 Variance 14221.64096 13546.62069 Observations 5569 4549 Pooled Variance 13918.16209 Hypothesized Mean Difference 0 df 10116 t Stat 26.0378387 P(T<=t) one-tail 5.0467E-145 t Critical one-tail 1.64500427 P(T<=t) two-tail 1.0093E-144 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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