Question

A ski company in Vail owns two ski shops, one on the west side and one on the east side of Vail. Ski hat sales data (in dollars) for a random sample of 5 Saturdays during the 2004 season showed the following results. Is there a significant difference in sales dollars of hats between the west side and east side stores at the 10 percent level of significance

Answer 1

Answer:

If t(critical) < - 1.86 and t(critical) > + 1.86 we will have to reject the null.

Explanation:

What we actually want to know is the difference in the sales between the east and the west sides.

From the question, we are to work with a 10 percent level of significance that is 0.1 level of significance. Where the percent level of significance is represented by "h".

The Hypothesis for this is given in the question below;

Hj: μd = 0.

Hi: μd ≠ 0.

Or

Hj : μ(east) = μ(west).

Hi : μ(east) ≠ μ(west).

The value for t(critical) =+/- t(c/2) {df = n1 + n2 - 2 }.

[ Note that c/2) is a subscript of t and c = .1].

t(critical) = +/- t(0.O5) [ df = 5 + 5 - 2].

t(critical) = + 1.86 or - 1.86