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
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 }.
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