Hypothesis Test for Independent Groups Two Means

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Presentation transcript:

Hypothesis Test for Independent Groups Two Means Two different computer firms manufacture laptop computers. Random samples are selected from each firm and the following data is collected. Firm A: nA=20 sA=$100 = $1500 Firm B: nB=22 sB=$200 = $1900 Test the claim that the average price of Firm A’s laptop is no different from the average price of Firm B’s laptop Ho: uA = µB Ha: uA ≠ uB

Hypothesis Test for Independent Groups Two Means = difference between the average price of Firm A’s and Firm B’s laptops Distribution for the Test: Student-t for the difference of two means

Hypothesis Test for Independent Groups Two Means USE A 2-SampTTest. Test statistic: t = -8.31 Standardized score for p-value: ≈ 0

Hypothesis Test for Independent Groups Two Means Decision: Assume REJECT H0. Conclusion: There is sufficient evidence to conclude that the average price of Firm A’s laptop is different from the average price of Firm B’ laptop.