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Statistics - Standard Deviation

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A study examining the cost of living in urban versus rural areas was carried out in 1985. Two samples were drawn, and individuals recorded their household expenses over a three month period. Weekly averages and standard deviations show the following:

Urban Rural
mean = $83.50 = $71.10

standard = 7.40 = 6.20
deviation

sample = 13 = 16
size

Is there a significant difference in rural/urban expenditures? (alpha = .01)

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The expert examines standard deviation expenses, Step-by-step solution is provided.

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(a) H0: 1 - 2 = 0 and Ha: 1 - 2 ≠ 0
(b)  = 0.01
(c) md = m1 - m2 = 83.50 - 71.10 = 12.40
(d) S = ...

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