Answered step by step
Verified Expert Solution
Question
1 Approved Answer
A mobile phone company offers two plans to its subscribers. When new subscribers sign up, they are asked to provide some demographic information. The mean
A mobile phone company offers two plans to its subscribers. When new subscribers sign up, they are asked to provide some demographic information. The mean yearly income of subscribers to Plan A is $75,917 while $71,400 is the mean income for subscribers to Plan B. The annual incomes of subscribers to Plan A and Plan B are recorded. The following output is obtained using the t-test function in RStudio: welch Two Sample t-test data: Plan A and Plan B t = 1. 0161, df = 37.964, p-value = 0.158 Alternative hypothesis: true difference in means is greater than 0 95 percent confidence interval: -2977 .756 Inf Sample estimates: mean of x mean of y 75917.0 71400 .0 Conduct an appropriate hypothesis test at a 5% level of significance to determine whether the income of those selecting Plan A is larger. Assume that the annual incomes for both groups are normally distributed. a. State the hypothesis statements. [1] b. State all the assumptions made. [1] c. State the test statistic including the degrees of freedom. [L] d. Write down the decision clearly stating the reason. [1]
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started