Question
A consumer report company obtained records of the monthly cell phone bills of students at Bush Campus and takes a random sample of 10 cell
A consumer report company obtained records of the monthly cell phone bills of students at Bush Campus and takes a random sample of 10 cell phone bills of Bush campus residents from provider AG&G and another of 8 cell phones bills from provider CT&T The summary data is given below. We want to compare the mean cost between CT&T and AG&G phones. Are they the same? It is assumed that the populations are normal, and the variances are approximately equal and = 0.10.
-Which hypothesis test is appropriate?
-What kind of alternative should be used?
-Perform the test and discuss the conclusion.
Sample | Mean | SD | Sample Size |
AG&G | $33 | 7 | 10 |
CT&T | $40 | 11 | 8 |
Refer above.
-Does the data suggest that the standard deviation of the AG&G bills is smaller than that for CT&T bills?
-Carry out a test at significance level =0.01
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