A technician compares repair costs for two types of microwave ovens (type I and type II). He believes that the repair cost for type I ovens is greater than the repair cost for type II ovens. A sample of 37 type I ovens has a mean repair cost of $70.68. The population standard deviation for the repair of type I ovens is known to be $19.05. A sample of 40 type II ovens has a mean repair cost of $64.02. The population standard deviation for the repair of type II ovens is known to be $19.68. Conduct a hypothesis test of the technician's claim at the 0.01 level of significance. Let μ1 be the true mean repair cost for type I ovens and μ2 be the true mean repair cost for type II ovens.
Step 1 of 5 : State the null and alternative hypotheses for the test.
Step 2 of 5 : Compute the value of the test statistic. Round your answer to two decimal places.
Step 3 of 5 : Find the p-value associated with the test statistic. Round your answer to four decimal places.
Step 4 of 5 : Make the decision for the hypothesis test: Reject Null Hypothesis or Fail to Reject Null Hypothesis
Step 5 of 5 : State the conclusion of the hypothesis test: There is sufficient evidence to support the claim or There is not sufficient evidence to support the claim.
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To test :
Test statistic :
where ,
The value of the test statistic :
We reject H0 if the
Now ,
Hence we accept the null hypothesis or H0 .
There is not sufficient evidence to support the claim that the repair cost for type I ovens is greater than the repair cost for type II ovens
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