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Testing of hypothesis problem: Independent t-test

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A sample of 25 concession stand purchases show a mean purchase of $5.29 with a standard deviation of $3.02. However, a later showing of the same movie, a sample of 25 purchases where the mean was $5.12 with a standard deviation of $2.14. The means appear to be very close, but not the variances.

At alpha = .05, is there a difference in variances? Show all steps clearly, including an illustration of the decision rule.

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Solution Summary

The step by step method for testing the hypothesis under the 5 step approach is discussed here. An Excel template for each problem is also included. This template can be used to obtain the answers of similar problems.

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