Does the data suggest that the standard deviation of the AG&G bills is smaller than that for CT&T bills? Carry out a test at significance level α=0.01
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A consumer report company obtained records of the monthly cell phone bills of students at Bush Campus and takes a random sample of 10 cell phone bills of Bush campus residents from provider AG&G and another of 8 cell phones bills from provider CT&T . The summary data is given bellow.
We want to compare the mean cost between CT&T and AG&G phones. Are they the same? It is assumed that the populations are normal, and the variances are approximately equal and α = 0.10. Which hypothesis test is appropriate? What kind of alternative should be used? Perform the test and discuss the conclusion.
Sample |
Mean |
SD |
Sample Size |
AG&G |
$33 |
7 |
10 |
CT&T |
$40 |
11 |
8 |
Refer to problem 2 above. Does the data suggest that the standard deviation of the AG&G bills is smaller than that for CT&T bills? Carry out a test at significance level α=0.01
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