A test concerning economic literacy was administered to two groups, on consisting of college graduates and the other consisting of high school graduates. Test results: College Graduates: High School Graduates: N1=75 N2 X1=77.5 X2=50.4 s1 = 6.2 s2=9.4 Assume that the population variances and standard deviations are equal. Does the data show that college graduates, on average, score significantly higher on the test? (is u1>µ2)? Use significance level a=.01 to test Ho: μ1 - μ2 < 0

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A test concerning economic literacy was administered to two groups, on consisting of college
graduates and the other consisting of high school graduates. Test results:
College Graduates:
High School Graduates:
N1=75
N2
X1=77.5
X2=50.4
s1 = 6.2
s2=9.4
Assume that the population variances and standard deviations are equal. Does the data show
that college graduates, on average, score significantly higher on the test? (is µ1>µ2)?
Use significance level a=.01 to test Ho: μ1 - μ2 < 0
Transcribed Image Text:A test concerning economic literacy was administered to two groups, on consisting of college graduates and the other consisting of high school graduates. Test results: College Graduates: High School Graduates: N1=75 N2 X1=77.5 X2=50.4 s1 = 6.2 s2=9.4 Assume that the population variances and standard deviations are equal. Does the data show that college graduates, on average, score significantly higher on the test? (is µ1>µ2)? Use significance level a=.01 to test Ho: μ1 - μ2 < 0
Expert Solution
Step 1

Given data:

College graduates:

n1=75x¯1=77.5s1=6.2

High school graduates:

n2=75x¯2=50.4s2=9.4

Level of significance, α=0.01

 

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