|Bank of America's Consumer Spending Survey collected data on annual credit card changes in seven different categories of expenditures: transportation, groceries, dining out, household expenses, home furnishings, apparel, and entertainment. Using data from a sample of 42 credit card accounts, assume that each account was used to identify the annual credit card charges for groceries (population 1) and the annual credit card charges for dining out (population 2). Using the difference data, the sample mean difference was d = $850 (Note: d= difference = groceries – dining out charges) and the same standard deviation was s, = $1123 .d= Difference = groceries charges – dining out charges. a. Formulate the null and alternative hypotheses to test for no difference between the population mean credit card charges for groceries and the population mean credit card charges for dining out. (20%) b. Use a 0.05 level of significance. What is the p-value? Use the p-value approach, can you conclude that the population means differ? c. Which category, groceries or dining out, has a higher population mean annual credit card charge? What is the point estimate of the difference between the population means? What is the 95% confidence interval estimate of the difference between the population means?
|Bank of America's Consumer Spending Survey collected data on annual credit card changes in seven different categories of expenditures: transportation, groceries, dining out, household expenses, home furnishings, apparel, and entertainment. Using data from a sample of 42 credit card accounts, assume that each account was used to identify the annual credit card charges for groceries (population 1) and the annual credit card charges for dining out (population 2). Using the difference data, the sample mean difference was d = $850 (Note: d= difference = groceries – dining out charges) and the same standard deviation was s, = $1123 .d= Difference = groceries charges – dining out charges. a. Formulate the null and alternative hypotheses to test for no difference between the population mean credit card charges for groceries and the population mean credit card charges for dining out. (20%) b. Use a 0.05 level of significance. What is the p-value? Use the p-value approach, can you conclude that the population means differ? c. Which category, groceries or dining out, has a higher population mean annual credit card charge? What is the point estimate of the difference between the population means? What is the 95% confidence interval estimate of the difference between the population means?
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...
Related questions
Question
Transcribed Image Text:|Bank of America's Consumer Spending Survey collected data
on annual credit card changes in seven different categories of expenditures: transportation, groceries,
dining out, household expenses, home furnishings, apparel, and entertainment. Using data from a
sample of 42 credit card accounts, assume that each account was used to identify the annual credit
card charges for groceries (population 1) and the annual credit card charges for dining out (population
2). Using the difference data, the sample mean difference was d = $850 (Note: d= difference =
groceries – dining out charges) and the same standard deviation was s, = $1123 .d= Difference =
groceries charges – dining out charges.
a. Formulate the null and alternative hypotheses to test for no difference between the population
mean credit card charges for groceries and the population mean credit card charges for dining out.
(20%)
b. Use a 0.05 level of significance. What is the p-value? Use the p-value approach, can you
conclude that the population means differ?
c. Which category, groceries or dining out, has a higher population mean annual credit card charge?
What is the point estimate of the difference between the population means? What is the 95%
confidence interval estimate of the difference between the population means?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 4 images
Recommended textbooks for you
A First Course in Probability (10th Edition)
Probability
ISBN:
9780134753119
Author:
Sheldon Ross
Publisher:
PEARSON
A First Course in Probability (10th Edition)
Probability
ISBN:
9780134753119
Author:
Sheldon Ross
Publisher:
PEARSON