A survey was conducted of 2,000 residents of New York and 2,000 residents from Ohio about their weekly salary. For New York. the average is $8,500, with a standard deviation of 2,000. For Ohio, the average is $8,400 with a standard deviation of 1,000. The Ho is that those in New York earn more than those in Ohio, while the alternative hypothesis is that those in Ohio earn more than those in New York.
a. Using a two-sided probability with a significance level of α = 0.05, are earnings in New York statistically significant when compared to workers from Ohio?
b. Would these results change if the α = 0.1? And why?
The sample means are
. The sample standard deviations are
. The sample sizes are
.
a)The
CI for difference in means is mean is
The 95% CI for difference in means is
Since the lower bound of the confidence interval is gretare than 0 , we conclude that the
earnings in New York statistically significant when compared to workers from Ohio.
b)The 90% CI for difference in means is
No. The above conclusion holds. For the lower bound of the confidence interval is gretare than 0 .
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