Periodically Merrill Lynch customers are asked to evaluate Merrill Lynch¯Financial consultants and services (2000 Merrill Lynch Client Satisfactory Survey). Higher ratings on the client satisfaction survey indicate better service with 7 the maximum service
rating. Independent samples of service ratings for two ¯Financial consultants are summarized below. Consultant A has 10 years of experience while consultant B has 1 year of experience. Using a= .05, test to see whether the consultant with the more experience has the higher population mean service rating.
Consultant A Consultant B
x1 = 6.82 x2 = 6.25
s1 = .64 s2 = .75
n1 = 16 n2 = 10
a) State the null and the alternative hypotheses.
b) Compute the value of the test statistic.
c) What is the p-value?
d) What is your conclusion?
Step by step method for testing the hypothesis under 5 step approach is discussed here. Excel template for each problem is also included. This template can be used to obtain the answers of similar problems.