You can
put this solution on YOUR website!A Cell phone company offers two plans to its subscribers. At the time new subscribers sign up they are asked to provide some demographic information.
The mean yearly income for a sample of 42 subscribers to plan A is $57,000 with a standard Deviation of $6,000.
For a sample of 50 subscribers to plan B the mean income is $63,000 with a standard deviation of $4,900.
At a significance of 0.05 is there a difference in between the two plans?
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Comment: I don't think you are comparing plans; you are comparing income
of plan purchasers.
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Ho: u(A)=u(B)
H1: u(A) is not equal to u(B)
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Alpha:5%
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CV:+-1.96
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What Formula?
Test statistic for 2-Sample T-test:
t(57000-63000) = (-6000)/sqrt[(6000^2/42)+(4900^2/50)]=-5.188..
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Conclusion: since test stat is in the rejection interval, Reject Ho.
Income of plan A and plan B purchasers are not the same.
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Cheers,
Stan H.
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