Responses of 20 people

Spend (Variable 4)

25

50

75

100

50

60

70

80

90

100

100

100

100

100

100

200

300

100

200

300

Gender (Variable 1)

1

1

1

1

1

1

1

1

1

1

2

2

2

2

2

1

1

1

1

1

Problem 4a

At a 1% level of significance, conduct a two-tailed test of hypothesis involving the population mean for Variable 4, for just those customers who responded "1" for Variable 1 in your survey (feel free to specify any value for the population claim that makes sense given your data). In your answer make sure that you show H0 and Ha, sketch the sampling distribution showing the critical value(s) and the rejection region. Use your calculator for all the computations required to determine your test statistic, show all formulae with the correct numbers substituted in the formulae and also state the decision and conclusion in the context of the survey. Show all your work . Where relevant, keep all your work and your final answer to a minimum of four decimals, unless otherwise stated.

[8 marks] .

Problem 4b

What key assumptions did you make in conducting the test in Problem 4a. Fully Explain. [2 marks]