You're a sociologist studying whether grocery prices are different in the inner cities than they are in the suburbs. To investigate this, you pick a random set of items (a basket of goods), and then send shoppers to buy these items at an inner city (IC) grocery, and also at a suburban (SU) grocery. You pick 27 different baskets of goods, so your secret shoppers buy 27 baskets, once at the inner city store, and once at a suburban store. The data is given in the dataset named "ICvSU_2799.xls", which you can find in data folder under Course Documents. Prices could be higher in the inner city because of discrimination, or they could be higher in the suburbs because of the greater disposable income. Use Excel to test the research hypothesis that inner city prices are different than the suburb's prices. The null hypothesis is that inner city prices are equal to suburban prices. You test at the alpha = 0.01 significance level
You're a sociologist studying whether grocery prices are different in the inner cities than they are in the suburbs. To investigate this, you pick a random set of items (a basket of goods), and then send shoppers to buy these items at an inner city (IC) grocery, and also at a suburban (SU) grocery. You pick 27 different baskets of goods, so your secret shoppers buy 27 baskets, once at the inner city store, and once at a suburban store.
The data is given in the dataset named "ICvSU_2799.xls", which you can find in data folder under Course Documents.
Prices could be higher in the inner city because of discrimination, or they could be higher in the suburbs because of the greater disposable income. Use Excel to test the research hypothesis that inner city prices are different than the suburb's prices. The null hypothesis is that inner city prices are equal to suburban prices. You test at the alpha = 0.01 significance level.
What do you conclude? Are prices the same? Who has higher prices?
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