Refer to Exhibit 10-30. What is the distribution of the test statistic in this problem? Chi Square Distribution F-Distribution OT-Distribution Normal Distribution

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**Exhibit 10-30**

In order to determine whether or not there is a significant difference between the hourly wages of workers at Ford and Ferrari, the following data have been accumulated.

- **Ford**
  - \( n_1 = 50 \)
  - \( \bar{x}_1 = \$20.50 \)
  - \( \sigma_1 = \$2.50 \)

- **Ferrari**
  - \( n_2 = 70 \)
  - \( \bar{x}_2 = \$10.25 \)
  - \( \sigma_2 = \$2.00 \)

Refer to Exhibit 10-30. What is the distribution of the test statistic in this problem?

- ○ Chi Square Distribution
- ○ F-Distribution
- ○ T-Distribution
- ○ Normal Distribution
Transcribed Image Text:**Exhibit 10-30** In order to determine whether or not there is a significant difference between the hourly wages of workers at Ford and Ferrari, the following data have been accumulated. - **Ford** - \( n_1 = 50 \) - \( \bar{x}_1 = \$20.50 \) - \( \sigma_1 = \$2.50 \) - **Ferrari** - \( n_2 = 70 \) - \( \bar{x}_2 = \$10.25 \) - \( \sigma_2 = \$2.00 \) Refer to Exhibit 10-30. What is the distribution of the test statistic in this problem? - ○ Chi Square Distribution - ○ F-Distribution - ○ T-Distribution - ○ Normal Distribution
Expert Solution
Step 1

Assumptions for t distribution are given below:

  • Samples are independently and randomly selected from the population.
  • Population standard deviation is unknown.
  • The sample size is smaller. That is, the sample size is less than 30.

Assumptions for normal distribution are given below:

  • Samples are independently and randomly selected from the population.
  • Population standard deviation is known.
  • The sample size is larger.
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