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    Two-sample (independent sample) test of hypothesis

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    Ms. Lisa Monnin is the budget director for the New Process Company. She would like to compare the daily travel expenses for the sales staff and the audit staff. She collected the following sample

    Sales $ 131 135 146 165 136 142
    Audit $ 130 102 129 143 149 120 139

    At the .10 significance level, can she conclude that the mean daily expenses are greater for the sales staff than the audit staff? What is the p-value?

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    Solution Preview

    This problem is best approached as a two-sample (independent sample) test of hypothesis with a one tailed alternative since the director would like to determine if the sales daily expenses are greater on average than the audit daily expenses. In this ...

    Solution Summary

    This problem is an example of a two-sample (independent sample) test of hypothesis (t-test) with a one tailed alternative. The decision rule in this test compares the p-value of the hypothesis test to the significance level of the test.