# Independent sample t test

A real estate agent claims that there is no difference between the mean household incomes of two neighborhoods. The mean income of 12 randomly selected households from the first neighborhood was $35750 with a sample standard deviation of $1900. In the second neighborhood, 10 randomly selected households had a mean income of $34200 with a sample standard deviation of $1825.

(2) Which two-sample test should you use for this situation?

(18) Using a significance level of ±=0.01, determine if there is enough evidence to reject the real estate agent's claim. You must state the hypotheses, determine the test statistic, and either the P-value(s) or critical value(s). Finally, you must clearly state your conclusion. Round all answers to two decimal places.

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Hypotheses

A real estate agent claims that there is no difference between the mean household incomes of two neighbourhoods. The mean income of 12 randomly selected households from the first neighbourhood was $35750 with a sample standard deviation of $1900. In the second neighbourhood, 10 randomly selected households had a mean income of $34200 with a sample standard deviation of $1825.

Answers

(2) Which two-sample test should you use for this situation?

Independent sample t test assuming equal variances is most appropriate in this situation.

(18) Using a significance level of α=0.01, determine if ...

#### Solution Summary

Independent sample t tests are examined.