A sample of 25 PCC studentsspent an average of $75 with a standard deviation of $17.50. Another sample of 20 ELAC studentsshowed that they spent an average of $89 with a standard deviation of $14.40. Assume that the amounts by all PCCand all ELAC students are normally distributed with equal but unknown population standard deviations.

Required:
Using 5% significance level and a formal hypothesis test can you conclude that the mean amount spent by all PCC students is less than the mean spent by all ELAC students?

Respuesta :

Answer:

Step-by-step explanation:

Given that:

For PCC

The sample size [tex]n_1[/tex] = 25

sample mean [tex]\overline x_1[/tex] = 75

standard deviation [tex]s_1[/tex] = 17.50

For ELAC

The sample size [tex]n_2[/tex] = 20

Sample mean [tex]\overline x_2 = 89[/tex]

Standard deviation [tex]s_2[/tex] = 14.40

Significance level = 0.05

The null hypothesis:

[tex]H_o : \mu_1 =\mu_2[/tex]

The alternative hypothesis;

[tex]H_1 : \mu_1< \mu_2[/tex]

Since the population standard deviation are synonymous pooled standard deviation; Then:

[tex]sp = \sqrt {\dfrac {(n_1-1)s_1^2)+(n_2-1)s_2^2 }{n_1+n_2-2}[/tex]

[tex]sp = \sqrt {\dfrac {(25-1)17.50^2)+(20-1)14.40^2 }{25+20-2}[/tex]

[tex]sp = 16.20[/tex]

The test statistics can be computed as:

[tex]t = \dfrac{\overline x_1 -\overline x_2}{sp \times \sqrt{\dfrac{1}{n_1} + \dfrac{1}{n_2} }}[/tex]

[tex]t = \dfrac{75-89}{16.20 \times \sqrt{\dfrac{1}{25} + \dfrac{1}{20} }}[/tex]

[tex]t = -2.88[/tex]

The p-value [tex]= P(t_{n_1+n_2-1} <t)[/tex]

[tex]= P(t_{43} <-2.88)[/tex]

= 0.0031

Decision Rule: To reject the null hypothesis if the p-value is less than the significance level

Conclusion: There is sufficient evidence to conclude that the mean amount spent by all PCC students is less than the mean amount spent by all ELAC students.