Refer to Table 2, the critical value(s) is (are): Table 2 Target versus Walmart:

Question

Refer to Table 2, the critical value(s) is (are):

Table 2

Target versus Walmart: Who has the lowest prices? Given Walmart’s slogan “Save Money—Live Better,” you suspect that Walmart does. In order to test your suspicion, you identify 20 items (all brand-name items) currently on your household shopping list. You visit both Target and Walmart, price each item, and organize and store these data in TargetWalmart – download this Excel in the attachment. At the 0.05 level of significance, is there evidence that the mean price of items is lower at Target than at Walmart?

You need to download TargetWalmart data file.

Question 30 options:

1)

2)

3)

4)

1)

1.7291

2)

-2.0930

3)

2.0930

4)

-1.7291 11 Shopping ItemTarget Walmart 5.47 2 10.9911.97 3 3.292.85 14.97 12.97 5 4.99 4.97 618.99 14.97 6.98 7.92 92.992.75 10 2.99 2.75 112.99 3.98 12 2.19 1.89 1 5.09 7 3.89 8 10.98 10 12 13 14 15 16 17 18 19 20 21 13 9.299.27 14 5.99 5.86 53.98 3.58 2.67 72.99 2.98 18 2.39 2.18 16 3.19 1909 1.89 20 3.98 3.97 23 24 25 26 27 28 29 30 31

Explanation / Answer

This is a lower tailed t-test.

There are 20 items. Hence the degree of freedom would be given by,

df = N - 1 = 20 - 1 = 19

The critical value would be the value of t-distributionwith 0.05 cumulative probability and 19 degrees of freedom. Using the t-distribution table we find this value to be -1.7291

Hence the correct option would be,

4) -1.7291

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