University of Queensland researchers J. Hann and R. Weber sampled private sector and public sector organizations in Australia to study the planning undertaken by their information systems departments (Management Science, July 1996). As part of that process they asked each sample organization how much it had spent on information systems and technology in the previous fiscal year as a percentage of the organization's total revenues. The results are reported in the table.

Private Sector Public Sector

............................................................ 2.58% 5.40% 5.05 2.55

.05 9.00 2.10 10.55 4.30 1.02 2.25 5.11 2.50 12.42 1.94 1.67 2.33 3.33 Source: Adapted from Hann, J., and Weber, R. "Information systems plannlng A model and empirical tests." Murzugement Sctence, Vol 42, No. 2, July, 1996, pp. 1043-1064.

a. Do the two sampled populations have identical probability distributions or is the distribution for public sector organizations in Australia located to the right of Australia's private sector firms? Test using a = .05.

b. Is the p-value for the test less than or greater than

.05? Justify your answer.

c. What assumptions must be met to ensure the validity of the test you conducted in part a?