Case Study #3 is intended to test your knowledge of how to appropriately compare two means.

The data file has 50 randomly selected student debt amounts from 2019 and 50 randomly

selected student debt amounts from 2012. The data fields included are as follows:

? Debt in 2019 (dollars)

? Debt in 2012 (dollars)

A university representative wants to know whether the sample data provide enough evidence

to believe there is a difference between the debt amounts in the two years. The null and

alternative hypotheses are shown below.

? Null Hypothesis: Mean Student Debt in 2019 is equal to Mean Student Debt in 2012

? Alternative Hypothesis: Mean Student Debt in 2019 is not equal to Mean Student Debt

in 2012

Complete the following tasks:

1. Run an F-test for two sample variances using an alpha level of 0.05 and answer the

following questions:

a. Which of the two years has the higher mean? What are the values?

b. Which of the two years has the higher variance? What are the values?

c. Based on the statistical output, would you conclude that variances are equal or

not equal? Provide an appropriate/authoritative explanation leveraging the

statistical output.

2. Run an appropriate t-test (assuming either equal or unequal variances based on your

conclusion in 1c above) using an alpha level of 0.05 and answer the following questions:

a. Is this a one-tailed or two-tailed test? Provide an appropriate/authoritative

explanation that fully explains the choice.

b. Based on the statistical output, would you conclude that means are equal or not

equal? Provide an appropriate/authoritative explanation leveraging the

statistical output.

c. Using everyday language that could be understood by parents and students,

what does the analysis say about student debt in 2019 versus 2012? Provide an

appropriate/authoritative explanation leveraging the statistical output (e.g., use

confidence level, rationale, etc.)

Make sure that you run all the required analyses using the Data Analysis Toolpak in Excel and

SUBMIT the Data Analysis Output along with the Data file in a Single Excel workbook that

shows all your output. You should also submit a separate Word document that fully, and

professionally, responds to each question.

Debt in 2019 [dollars] | Debt in 2012 [dollars] 3676 $753 Test the Hypotheses Below 4302 2388 5259 4505 Null Hypothesis: Mean Student Debt in 2019 is equal to Mean Student Debt in 2012 5281 3149 Alternative Hypothesis: Mean Student Debt in 2019 is not equal to Mean Student Debt in 2012 1846 4991 3083 2714 Alpha Level = 0.05 2949 4756 3049 2853 3713 3718 4722 4798 4325 3687 4601 2847 5073 2833 3654 3506 3149 3594 3956 3181 4744 2317 5769 3508 3783 434 3671 2546 5287 3810 2957 2901 8378 2408 4527 3404 4804 3212 4941 2627 4246 3872 3100 3647 3803 3771 3275 2651 4354 4842 2281 2869 5026 3045 4689 4506 3073 3544 4547 3326 4922 4595 4841 3305 3852 3857 4525 3851 5062 4669 4059 2523 6271 3728 3089 2688 3330 4736 1557 5279 1698 4281 4069 4232 2435 5308 4812