Fairfield Homes is developing two parcels near Pigeon Fork, Tennessee. In order to test different advertising approaches, it uses different media to reach potential buyers. The mean annual family income for 18 people making inquiries at the first development is $165,000, with a standard deviation of $36,000. A corresponding sample of 28 people at the second development had a mean of S179,000, with a standard deviation of $25,000. Assume the population standard deviations are the same. At the 0.02 significance level, can Fairfield conclude that the population means are different? At the 0.02 significance level, can Fairfield conclude that the population means are different? a. What are the null and alternate hypotheses? O HO: MiZ H2 Hi M# P2 O Ho: Hi # H2 Hi Mn = 42 b. Compute the test statistic. (Negative amounts should be indicated by a minus sign. Round your answers to 2 decimal places.) Test statistic c. Compute the p-value. NOTE: P-value calculators are available through online search. (Round your answer to 4 decimal places.) p-value

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d. What is your decision regarding the null hypothesis?
O Do not reject Ha
O Reject Ha
e. Interpret the result.
The data indicates that the population means are
different.
no different.
Transcribed Image Text:d. What is your decision regarding the null hypothesis? O Do not reject Ha O Reject Ha e. Interpret the result. The data indicates that the population means are different. no different.
Fairfield Homes is developing two parcels near Pigeon Fork, Tennessee. In order to test different advertising approaches, it uses
different media to reach potential buyers. The mean annual family income for 18 people making inquiries at the first development is
$165,000, with a standard deviation of $36,000. A corresponding sample of 28 people at the second development had a mean of
$179,000, with a standard deviation of $25,000. Assume the population standard deviations are the same. At the 0.02 significance
level, can Fairfield conclude that the population means are different?
At the 0.02 significance level, can Fairfield conclude that the population means are different?
a. What are the null and alternate hypotheses?
O Ho: 1 = H2 H: M # H2
O Ho: 12 42 Hh:M#N2
O Ho: 1 H2 Hh:M=42
b. Compute the test statistic. (Negative amounts should be indicated by a minus sign. Round your answers to 2 decimal places.)
Test statistic
c. Compute the p-value. NOTE: P-value calculators are available through online search. (Round your answer to 4 decimal places.)
p-value
Transcribed Image Text:Fairfield Homes is developing two parcels near Pigeon Fork, Tennessee. In order to test different advertising approaches, it uses different media to reach potential buyers. The mean annual family income for 18 people making inquiries at the first development is $165,000, with a standard deviation of $36,000. A corresponding sample of 28 people at the second development had a mean of $179,000, with a standard deviation of $25,000. Assume the population standard deviations are the same. At the 0.02 significance level, can Fairfield conclude that the population means are different? At the 0.02 significance level, can Fairfield conclude that the population means are different? a. What are the null and alternate hypotheses? O Ho: 1 = H2 H: M # H2 O Ho: 12 42 Hh:M#N2 O Ho: 1 H2 Hh:M=42 b. Compute the test statistic. (Negative amounts should be indicated by a minus sign. Round your answers to 2 decimal places.) Test statistic c. Compute the p-value. NOTE: P-value calculators are available through online search. (Round your answer to 4 decimal places.) p-value
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