Question
Do government employees (population 1) take longer coffee breaks than private sector workers (population 2)? That is a question that interested a management consultant. To
Do government employees (population 1) take longer coffee breaks than private sector workers (population 2)? That is a question that interested a management consultant. To examine the issue, he took a random sample of 10 government employees and another random sample of 10 private sector workers and measured the amount of time (in minutes) they spent in coffee breaks during the day. The results indicate that average coffee break for government employees is 27.20 minutes with the standard deviation of 5.41 while average coffee break for private sector employees is 21.50 minutes with the standard deviation of 3.63. Assume equal population variances.
The null and alternative hypotheses are given by:
H0: 1 - 2 0; H1: 1 - 2 < 0H0: 1 - 2 = 0; H1: 1 - 2 0H0: 1 - 2 > 0; H1: 1 - 2 0H0: 1 - 2 0; H1: 1 - 2 > 0The Decision rule at the 5% significance level is given by
Reject H0 if t > 1.7341 and do not reject H0 otherwiseReject H0 if Z > 1.65 and do not reject H0 otherwiseReject H0 if Z > -1.96 and do not reject H0 otherwiseReject H0 if Z > 1.7341 and do not reject H0 otherwise
The pooledvariance is given by:
2.15664.615221.222518.6465
The calculated test statistic is:
Z = 1.6535t = 2.7667Z = 2.7671t = 2.1555
The Decision at the 5% significance level is:
Reject H0 and hence conclude that there is sufficient evidence at the 5% significance level to support the consultant's claimDo not reject H0 and hence conclude that there is sufficient evidence at the 5% significance level to support the consultant's claimReject H0 and hence conclude that there is insufficient evidence at the 5% significance level to support the consultant's claimDo not reject H0 and hence conclude that there is insufficient evidence at the 5% significance level to support the consultant's claim
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