Question

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

Answer 1

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.