Question
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.
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 40 subscribers to Plan A is $57,000 with a standard deviation of $9,200. For a sample of 30 subscribers to Plan B, the mean income is $61,000 with a standard deviation of $7,100.
At the .05 significance level, is it reasonable to conclude the mean income of those selecting Plan B is larger?
a.What are the null and alternate hypotheses? (Choose one)
A) H0:ABH1:A<B
B) H0:ABH1:A>B
C) H0:ABH1:A<B
b.Compute the test statistic.(Negative values should be indicated by a minus sign. Round your answer to 3 decimal places.)
c.Compute thep-value.NOTE: P-value calculators are available through online search.(Round your answer to 4 decimal places.)
d.What is your decision regarding the null hypothesis? (Choose one)
A) RejectH0
B) Do not rejectH0
e.At the 0.05 significance level, is it reasonable to conclude the mean income of those selecting Plan B is larger? (Choose one)
A) Yes
B) No
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