Please state the null hypothesis and explain the type of test to run.
1) You are interested in understanding whether the average Lifetime Value (the net present value of all the transaction expected from a customer) for the customers in the Florida is significantly different from those in California. You suspect that the California LTV (Lifetime value) would be higher than in Florida. In order to test this hypothesis, you pick 10 customers each in the California and Florida and record their LTV (in dollars). State the appropriate hypothesis.
Use α =0.05
The hypotheses are:
Ho: California LTV (Lifetime value) is the same as that in Florida
Appropriate Hypothesis stated and type of test to run indicated in the solution.