Question 819091: A local charity believes they receive more money from people in the River Heights
neighborhood than from people in the Lakeview neighborhood. They conducted a survey of 24
people randomly selected form each neighborhood and recorded
the results. At α = 0.01, is their
hypothesis correct?
Be sure to state the null and alternative hypothesis, the test value and the
critical value.
River Heights Lakeview
X bar 1: $35/person x bar 2: $25 / person
s 1: $5/person s 2: $8/person
n: 24 n:24
I believe I found the critical value of 2.5 but I can't figure out how to find the test value, any help is greatly appreciated.
Answer by stanbon(75887)   (Show Source):
You can put this solution on YOUR website! A local charity believes they receive more money from people in the River Heights neighborhood than from people in the Lakeview neighborhood.
They conducted a survey of 24 people randomly selected form each neighborhood and recorded the results.
At α = 0.01, is their hypothesis correct?
Be sure to state the null and alternative hypothesis, the test value and the
critical value.
River Heights Lakeview
X bar 1: $35/person x bar 2: $25 / person
s 1: $5/person s 2: $8/person
n: 24 n:24
-------
Ho: u(rh)-u(L) <= 0
Ha: u(rh)-u(L) >0 (claim)
================================
The critical value = 2.3263 but
test stat = z(35-25) = (10-0)/sqrt[5^2/24 + 8^2/24] = 5.1929
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Conclusion: Since the test stat is in the critical region, reject Ho.
Conclusion: The test results support the claim.
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Cheers,
Stan H.
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