Last Year and This year's Debt Ratio Comparisons.

See the Excel file.

The two columns of the data represent the debt ratios of last year and this year for the same household.

For example, the first row is for one family:current year debt ratio and last year debt ratio.

We want to know whether the average household debt ratio is increased.

This Year	Last Year
0.537	0.409
0.534	0.485
0.513	0.449
0.536	0.545
0.666	0.64
0.32	0.366
0.568	0.351
0.439	0.37
0.468	0.365
0.385	0.363
0.309	0.337
0.352	0.127
0.398	0.477
0.552	0.608
0.538	0.792
0.451	0.158
0.485	0.453
0.242	0.426
0.579	0.422
0.415	0.44
0.362	0.447
0.461	0.687
0.508	0.334
0.587	0.54
0.418	0.028
0.499	0.253
0.358	0.559
0.581	0.668
0.587	0.272
0.466	0.576
0.581	0.737
0.437	0.197
0.478	0.342
0.464	0.493
0.437	0.559
0.784	0.79
0.507	0.471
0.692	0.353

1) Is these a two population proportion test?

No means it is two-population means test. Yes or No

2)There are 3 t-test and 1 Z-test in excel Data Analysis,

which one is the CORRECT test we should use in this case?

a.t-test: Paired Two Sample for Means

b. t-test: Two samples assuming unequal variances

c. t-test: Two samples assuming equal variances

d. Z-test: Two sample for Means

3) Using the t-test: Paired sample means: what is the test statistic (t-stat)? 3 decimals.

4) What is the p-value? (one-tail), 4 decimals

5)What is your conclusion with 5% significance level? Choose one.

Tip: We use 5% as a cut-off or critical percentage, meaning, if p-value is smaller than 5%, we are happy and we can reject the Null and Accept the Alternative hypothesis;

While if p-value is larger than 5%, we have no statistical evidence to reject the NULL hypothesis.

a. We don't have enough statistical evidence to reject the NULL hypothesis.

That means, we don't have enough evidence to infer that the ratios are higher this year than last.

b.Not enough information for me to make that a conclusion

c. We have statistical evidence to reject the NULL and accept the alternative hypothesis.

That means, we do have enough evidence to infer that the ratios are higher this year than last.

d. We have overwhelming statistical evidence to reject the NULL and accept the alternative hypothesis.

That means, we do have overwhelming evidence to infer that the ratios are higher this year than last.

6) Write a paragraph to explain your statistical conclusion. What does that means?