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Two-sample T-test

A market analyst wants to determine the difference in the average price of a gallon of milk in Cleveland and New York. A telephone survey is conducted consisting of 31 randomly selected consumers in Cleveland. They are asked if they purchased a gallon of milk during the past 2 weeks. If no, he continues to select consumers until he selects n=31 people who say yes. If yes, he asks how much they paid for the gallon of milk. A similar survey is conducted in New York with 31 respondents. The data compiled is:

Seattle Atlanta
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$2.55 $2.36 $2.43 $2.25 $2.40 $2.39
2.67 2.54 2.43 2.30 2.33 2.40
2.50 2.54 2.38 2.19 2.29 2.23
2.61 2.80 2.49 2.41 2.18 2.29
3.10 2.61 2.57 2.39 2.59 2.53
2.86 2.56 2.71 2.26 2.38 2.19
2.50 2.64 2.97 2.19 2.25 2.45
2.47 2.72 2.65 2.42 2.61 2.33
2.76 2.73 2.80 2.60 2.25 2.51
2.65 2.83 2.69 2.38 2.29 2.36
2.71 2.44

Do a two-sample t-test for the above given data. Use the five step hypothesis testing procedure to determine whether the price of a gallon of milk between Cleveland and New York is different. Interpret the results and make recommendations.

Solution Summary

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$2.19