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Hypothesis Testing and P-Value

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Independent random samples taken on two university campuses revealed the following information concerning the average amount of money spent on textbooks during the fall semester.

University A University B
Sample Size 50 40
Average Purchase $260 $250
Population Standard Deviation $ 20 $23

We want to determine if, on the average, students at University A spent more on textbooks then the students at University B.
a.Compute the test statistic.
b.Compute the p-value.
c.What is your conclusion? Let alpha = .05.

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Solution Summary

Solution describes the steps for hypothesis testing if students at University A spent more on textbooks then the students at University B. It also calculates p value for the test.

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Please refer attached file for complete solution. Expressions/Characters typed with the help of equation writer are missing here.

Solution:
Ho: There is not difference expenditure on text books
H1: students at University A spent more on textbooks then the students at University ...

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  • BEng (Hons) , Birla Institute of Technology and Science, India
  • MSc (Hons) , Birla Institute of Technology and Science, India
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