Many homeowners rely on handymen to perform small jobs, such as repairs or maintenance, around their residence.
Question:
Many homeowners rely on handymen to perform small jobs, such as repairs or maintenance, around their residence. According to HomeAdvisor Inc., the average cost for a handyman project in Atlanta is more than the average cost for a project in Chicago. To test this claim, a random sample of 32 handyman projects in Atlanta was selected, and it was found that the average cost was $ 437 with a sample standard deviation of $ 83. A random sample of 36 handyman projects in Chicago was selected, and it was found that the average cost was $ 411 with a sample standard deviation of $ 62. Assume the population variances for the cost of handyman projects for these two cities are not equal.
a. Using α = 0.05, perform a hypothesis test for the HomeAdvisor claim.
b. Approximate the p value using Table 5 in Appendix A and interpret the results.
c. Determine the precise p value using Excel and interpret the results.
d. Verify your results using PHStat.
Step by Step Answer: