Do consumers spend more on a trip to Target compared to Walmart? Suppose researchers interested in this question collected a random sample from 80 Target customers and 85 Walmart customers by asking customers for their purchase amount as they left the stores. The 80 Target customers have the mean purchase amount $53 and the standard deviation $19. The 85 Walmart customers have the mean purchase amount $45 and the standard deviation $21. (a) Is the data collected from independent samples or dependent samples? (b) Is the relevant test statistic z-stat or t-stat? (c) Write down the hypotheses of the test. (d) The p-value is calculated to be 0.0056. Write down the conclusion of the test. Assume an � = 0.05 level of significance.
Inverse Normal Distribution
The method used for finding the corresponding z-critical value in a normal distribution using the known probability is said to be an inverse normal distribution. The inverse normal distribution is a continuous probability distribution with a family of two parameters.
Mean, Median, Mode
It is a descriptive summary of a data set. It can be defined by using some of the measures. The central tendencies do not provide information regarding individual data from the dataset. However, they give a summary of the data set. The central tendency or measure of central tendency is a central or typical value for a probability distribution.
Z-Scores
A z-score is a unit of measurement used in statistics to describe the position of a raw score in terms of its distance from the mean, measured with reference to standard deviation from the mean. Z-scores are useful in statistics because they allow comparison between two scores that belong to different normal distributions.
Do consumers spend more on a trip to Target compared to Walmart? Suppose
researchers interested in this question collected a random sample from 80 Target customers and 85 Walmart
customers by asking customers for their purchase amount as they left the stores. The 80 Target customers have
the mean purchase amount $53 and the standard deviation $19. The 85 Walmart customers have the mean
purchase amount $45 and the standard deviation $21.
(a) Is the data collected from independent samples or dependent samples?
(b) Is the relevant test statistic z-stat or t-stat?
(c) Write down the hypotheses of the test.
(d) The p-value is calculated to be 0.0056. Write down the conclusion of the test. Assume an � =
0.05 level of significance.
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