Use the file on Blackboard called "Excel Databases.xlsx". Locate the Consumer Food tab. Test to determine if there is a significant difference between households in a metro area and households outside the metro area in annual food spending. Assuming a 1% level of significance, use Excel to perform the appropriate two-sample t-test based on the results from the F-test for Equality of Variances. From the t-test, what conclusion can be drawn for this research study? a. There is a significant difference in annual food spending between households in a metro area and outside a metro area. Ob. Households in the metro area spend significantly less on annual food spending than households outside the metro area. Oc. There is not a significant difference in annual food spending between households in a metro area and outside a metro area. Od. Households in a metro area have less variability on annual food spending them households outside the metro area.

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100%
Annual Food Spending ($) Annual Household Income           ($) Non mortgage household debt ($) Region:   1 = NE     2 = MW    3 = S       4 = W Location:   1 = Metro      2 = Outside Metro
8909 56697 23180 1 1
5684 35945 7052 1 1
10706 52687 16149 1 1
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13855 63182 18866 1 1
15619 79064 21899 1 1
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9127 57424 15766 1 1
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Use the file on Blackboard called "Excel Databases.xlsx". Locate the Consumer Food tab. Test to determine if there is a
significant difference between households in a metro area and households outside the metro area in annual food
spending. Assuming a 1% level of significance, use Excel to perform the appropriate two-sample t-test based on the results
from the F-test for Equality of Variances. From the t-test, what conclusion can be drawn for this research study?
a. There is a significant difference in annual food spending between households in a metro area and outside a metro
area.
b. Households in the metro area spend significantly less on annual food spending than households outside the metro
area.
c. There is not a significant difference in annual food spending between households in a metro area and outside a metro
area.
Od. Households in a metro area have less variability on annual food spending them households outside the metro area.
Transcribed Image Text:Use the file on Blackboard called "Excel Databases.xlsx". Locate the Consumer Food tab. Test to determine if there is a significant difference between households in a metro area and households outside the metro area in annual food spending. Assuming a 1% level of significance, use Excel to perform the appropriate two-sample t-test based on the results from the F-test for Equality of Variances. From the t-test, what conclusion can be drawn for this research study? a. There is a significant difference in annual food spending between households in a metro area and outside a metro area. b. Households in the metro area spend significantly less on annual food spending than households outside the metro area. c. There is not a significant difference in annual food spending between households in a metro area and outside a metro area. Od. Households in a metro area have less variability on annual food spending them households outside the metro area.
Expert Solution
Step 1

Question of the problem : Test to determine if there is significant difference between households in a metro area and households outside the metro area in annual food spending . Assuming a 1% level of significance, use excel to perform the appropriate two sample t test based on the results from the F test for equality of variances .  

Null and Alternative Hypotheses

The following null and alternative hypotheses need to be tested:

Ho: \mu_1 = \mu_2

Ha: \mu_1 ≠ \mu_2

This corresponds to a two-tailed test, for which a t-test for two population means, with two independent samples, with unknown population standard deviations will be used. 

To perform a t-Test, execute the following steps.

Step 1 : First, perform an F-Test to determine if the variances of the two populations are equal. 

  • Click the “Data” tab and then click “Data Analysis.”
  • Click “F test two sample for variances” and then click “OK.”
  • Click the Variable 1 Range box and then type the location for your first set of data.
  • Click the Variable 2 box and then type the location for your second set of data.
  • Choose an alpha level. In most cases, an alpha level of 0.01 is given .
  • Select a location for your output.
  • Click “OK.”

Output : 

Statistics homework question answer, step 1, image 1

Decision Rule : If your f-value is higher than your F critical value, reject the null hypothesis as your two populations have unequal variances.

The critical value is 1.6351, and since , then the null hypothesis of equal variances is not rejected.  

We can conclude that , two variances are equal . 

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