Question

A local charity believes they receive more money from people in the Chevy Chase area than from people in the Alexandria area of Washington DC. They conducted a survey of 24 people randomly selected form each area and recorded the results. At α = 0.01, what is the critical value of the test?

Answer 1

Answer: The critical value of the test is 2.807.

Step-by-step explanation:

Since we have given that

n = 24

So, the degree of freedom v = n-1 = 24 - 1=23

Since, n>30, so we will use 't-test'.

Here, α = 0.01

so, According to t-table, we get that

$t_{\alpha ,v}=t_{0.01,23}=2.807$

If we take α, then we are taking about two tail test.

If we take $\dfrac{\alpha }{2}$ then we are talking about one tail test.

But in both the cases, the result will be same.

Hence, the critical value of the test is 2.807.