SOLUTION: Fairfield Homes is developing two parcels near Pigeon Fork, Tennessee. In order to test different advertising approaches, it uses different media to reach potential buyers. The mea

Question 1096332: Fairfield Homes is developing two parcels near Pigeon Fork, Tennessee. In order to test different advertising approaches, it uses different media to reach potential buyers. The mean annual family income for 14 people making inquiries at the first development is $157,000, with a standard deviation of $43,000. A corresponding sample of 25 people at the second development had a mean of $170,000, with a standard deviation of $29,000. Assume the population standard deviations are the same.

1.
State the decision rule for .10 significance level: H0: μ1 = μ2; H1:μ1 ≠ μ2. (Negative amounts should be indicated by a minus sign. Round your answers to 3 decimal places.)

Reject H0 if t is not between ___ and ____.

2.
Compute the value of the test statistic. (Negative amount should be indicated by a minus sign. Round your answer to 2 decimal places.)

Value of the test statistic ____
Answer by Boreal(15235) (Show Source): You can put this solution on YOUR website!
Ho mu1=mu2
Ha mu1 NE mu 2
alpha=0.10
test statistic is a t 0.95 df=48
reject if |z| is >1.645 (answer if z is not between -1.645 and +1.645)
test statistic is (157000-170000) numerator or -13000
the denominator is sqrt ((sigma1^2/14)+(sigma2^2/25))=
sqrt(165711428.6)=12873
value of test statistic is -1.01

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