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Testing for the Level of Risk

Two rival book companies offer a special discount deal to a college for textbooks in math and science. Since the discount is the same and the quality of books appears to be the same, the manager of the book store has to make a decision. She conducts a random sampling of prices of math and science books from both companies. Below are the results. At the 5% level of risk, what should she decide? Complete the test.

Company ABC Company XYZ

= $4 = $50
= 36 = 36

(a) (1) H0:

(b) (1) H1:

(c) (2) Critical Values:

(d) (3) Test Statistic (Show procedure.) t =

(e) (1) Decision on H0:

(f) (2) Conclusion on the problem:

Use your hand calculator to find the effect size for the data in #1 above. Is this ES meaningful?

Solution Preview

**Two rival book companies offer a special discount deal to a college for textbooks in math and science. Since the discount is the same and the quality of books appears to be the same, the manager of the book store has to make a decision. She conducts a random sampling of prices of math and science books from both companies. Below are the results. At the 5% level of risk, what should she decide? Complete the test.

Company ABC Company XYZ

= $4 = $50
= 36 = 36

We conduct ...

Solution Summary

The solution examines testing for the level of risk for two companies. The effect size for the data is determined.

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