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The question requires that we have to state the hypothesis:
null hypothesis;H0: u1 < u2, the alternate hypothesis;H1: u1 > u2. The one tail test is what is to be used.
<h3>A. How to state the hypothesis</h3>H0: u1 < u2
H1: u1 > u2
The one tail test statistic is what is to be used here
<h3>B. standard error </h3>= 1.49
The df = 17 + 15 - 2
= 30
test statistic = 18.9 - 17.4 / 1.49
= 1.007
We have the critical value on excel as T.INV(0.9,30)
= 1.310
E. At 0.1, we can conclude that t-value (1.007) does not lies in the rejection area. We fail to reject the null hypothesis. Hence we conclude that the mean vacation with the unlimited plan is greater.
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