Preliminary data analyses indicate that you can reasonably use a t-test to condu
ID: 3132601 • Letter: P
Question
Preliminary data analyses indicate that you can reasonably use a t-test to conduct each of the hypothesis tests required in Exercise. Exercise Apparel and Services. According to the document Consumer Expenditures, a publication of the Bureau of Labor Statistics, the average consumer unit spent $1736 on apparel and services in 2012. That same year, 25 consumer units in the Northeast had the following annual expenditures, in dollars, on apparel and services. At the 5% significance level, do the data provide sufficient evidence to conclude that the 2012 mean annual expenditure on apparel and services for consumer units in the Northeast differed from the national mean of $1736?Explanation / Answer
t*=(1922.76-1736)/(350.9/sqrt(25))=2.66
t(0.025,24)=2.064
Hence as t<t*,we reject H0 and hence yes the 2012 mean annual expenditure differed from national mean of 1736