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

A First Course in Probability (10th Edition)
10th Edition
ISBN:9780134753119
Author:Sheldon Ross
Publisher:Sheldon Ross
Chapter1: Combinatorial Analysis
Section: Chapter Questions
Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...
icon
Related questions
Question

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

Expert Solution
steps

Step by step

Solved in 2 steps with 2 images

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
A First Course in Probability (10th Edition)
A First Course in Probability (10th Edition)
Probability
ISBN:
9780134753119
Author:
Sheldon Ross
Publisher:
PEARSON
A First Course in Probability
A First Course in Probability
Probability
ISBN:
9780321794772
Author:
Sheldon Ross
Publisher:
PEARSON