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    Statistics - Two Sample Hypothesis Test- using t-statistic

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    Question :

    In comparing purchases from 2 companies, a sample of 16 purchases from Cambells with the mean $ 11, 045 and Standard Deviation of $ 835 is taken. For a sample of 18 purchases from Rainer mean cost is $ 12,840 and Standard Deviation is $ 1545.
    At the 5% significance level, can we conclude that the cost from Rainer is higher?

    Two Sample Hypothesis Test using t-statistics

    © BrainMass Inc. brainmass.com October 9, 2019, 7:10 pm ad1c9bdddf


    Solution Preview

    Let Mu1 denote the mean purchases from Rainer and, Mu2 denotes the mean purchases from Cambells.
    We have to decide between the ...

    Solution Summary

    Solution to the posted problem is given step by step with explanation and working. Two Samples of sizes 16 and 18 are used with Sample Means, Sample Standard Deviations to Test the Difference between Population Means or in other words, to compare population means at 5% Significance level. Every minute detail is explained in a simple way as how to find the degrees of freedom, how to find the test-statistic, how to formulate the decision hypothesis, how to arrive at the decision using formulated decision rule.
    Students can use this solution as a model solution to work out other similar type of problems and it makes them easy to remember the steps and procedure involved in such type of problems.