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A consumer advocate researches the length of life between two brands of refrigerators, Brand A and Brand B. He collects data measured in years) on the longevity of 40 refrigerators for Brand A and repeats the sampling for Brand B. A portion of the data is shown in the accompanying table. (You may find it useful to reference the appropriate table: z table or t table) Brand A Brand B 16 16 14 20 18 17 Click here for the Excel Data File Assume that µz is the mean longevity for Brand A and µz is the mean longevity for Brand B. a. Specify the competing hypotheses to test whether the average length of life differs between the two brands. O Ho: 41- 42 = 0; HẠ: H1- H2#0 O Ho: H1- H2 2 0; HẠ: H1 – H2<0 O Họ: H1 - H2 S 0; HA: H1- 42 >0

A consumer advocate researches the length of life between two brands of refrigerators, Brand A and Brand B. He collects data measured in years) on the longevity of 40 refrigerators for Brand A and repeats the sampling for Brand B. A portion of the data is shown in the accompanying table. (You may find it useful to reference the appropriate table: z table or t table) Brand A Brand B 16 16 14 20 18 17 Click here for the Excel Data File Assume that µz is the mean longevity for Brand A and µz is the mean longevity for Brand B. a. Specify the competing hypotheses to test whether the average length of life differs between the two brands. O Ho: 41- 42 = 0; HẠ: H1- H2#0 O Ho: H1- H2 2 0; HẠ: H1 – H2<0 O Họ: H1 - H2 S 0; HA: H1- 42 >0

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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A consumer advocate researches the length of life between two brands of refrigerators, Brand A and Brand B. He collects data (measured in years) on the longevity of 40 refrigerators for Brand A and repeats the sampling for Brand B. A portion of the data is shown in the accompanying table. (You may find it useful to reference the appropriate table: z table or t table) Brand A Brand B 16 16 14 20 18 17 Click here for the Excel Data File Assume that u, is the mean longevity for Brand A and u, is the mean longevity for Brand B. a. Specify the competing hypotheses to test whether the average length of life differs between the two brands. O Ho: 41 - H2 = 0; HẠ: H1 - H2 # 0 O Ho: H1 - H2 z 0; HẠ: H1 – 42< 0 O Ho: H1 - H2 s 0; HẠ: H1 – 42> 0 b-1. Calculate the value of the test statistic. Assume that o2 = 4.4 and og? = 5.2. (Negative value should be indicated by a minus sign. Round final answer to 2 decimal places.) Test statistic
Transcribed Image Text:A consumer advocate researches the length of life between two brands of refrigerators, Brand A and Brand B. He collects data (measured in years) on the longevity of 40 refrigerators for Brand A and repeats the sampling for Brand B. A portion of the data is shown in the accompanying table. (You may find it useful to reference the appropriate table: z table or t table) Brand A Brand B 16 16 14 20 18 17 Click here for the Excel Data File Assume that u, is the mean longevity for Brand A and u, is the mean longevity for Brand B. a. Specify the competing hypotheses to test whether the average length of life differs between the two brands. O Ho: 41 - H2 = 0; HẠ: H1 - H2 # 0 O Ho: H1 - H2 z 0; HẠ: H1 – 42< 0 O Ho: H1 - H2 s 0; HẠ: H1 – 42> 0 b-1. Calculate the value of the test statistic. Assume that o2 = 4.4 and og? = 5.2. (Negative value should be indicated by a minus sign. Round final answer to 2 decimal places.) Test statistic
b-2. Find the p-value. p-value s 0.01 0.01 < p-value s 0.025 0.025 < p-value < 0.05 0.05 < p-value < 0.10 O p-value > 0.10 c. At the 5% significance level, what is the conclusion? Reject Ho; there is evidence that the average life differs between the brands. Reject Ho; there is no evidence that the average life differs between the brands. Do not reject Ho; there is evidence that the average life differs between the brands. Do not reject Ho; there is no evidence that the average life differs between the brands.
Transcribed Image Text:b-2. Find the p-value. p-value s 0.01 0.01 < p-value s 0.025 0.025 < p-value < 0.05 0.05 < p-value < 0.10 O p-value > 0.10 c. At the 5% significance level, what is the conclusion? Reject Ho; there is evidence that the average life differs between the brands. Reject Ho; there is no evidence that the average life differs between the brands. Do not reject Ho; there is evidence that the average life differs between the brands. Do not reject Ho; there is no evidence that the average life differs between the brands.
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