Question

Ms. Lisa Monnin is the budget director for Nexus Media Inc. She would like to compare the daily travel expenses for the sales staff and the audit staff. She collected the following sample information.

Sales ($)	129	135	148	160	135	144
Audit ($)	122	103	127	136	129	120	142

At the 0.025 significance level, can she conclude that the mean daily expenses are greater for the sales staff than the audit staff?

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1. State the decision rule. (Round your answer to 3 decimal places.)

2. Compute the pooled estimate of the population variance. (Round your answer to 2 decimal places.)

3. Compute the test statistic. (Round your answer to 3 decimal places.)

4. State your decision about the null hypothesis.

• Reject H₀: μ_s ≤ μ_a

• Do not reject H₀: μ_s ≤ μ_a

5. Estimate the p-value.

• Between 0.01 and 0.025

• Between 0.001 and 0.005

• Between 0.005 and 0.01

• Between 0.025 and 0.05

Answer 1

Explanation to the Answer: workings The given Sigrificanco level,= 0.015 -sd The Sample Size foi Sales staft The Sampe Size for Audit staff The degre f freedom Df nitn,-2 6+7-2 %31 The Critical valse ftusng t-distribeteun tabe: tehical tads প পুিিি = to.025.|1 2. 200985 -)2.200 ( Rand off to 3 decmal paces) !! (A) The deaision Rule: Refect the null if; t'alahted 72.200 () 8 Subsequent Answes इरिन्याक्य The Sample Sales staff X. mean 129+135+148+160 135+144 141.83

The stardard devialion f& Sales team: %3D (-1) 16५.न० 46.70 -12-83 12१ 135 -6.83 6. 17 38.02 330.02 46.69 148 160 18.17 135 -6-83 4.69 M630.83 144 2-17 X=141.83 630.83 (6-1) 630.83 126.17 El1.23 audit Staff The Sample mean fa 122+103 +127 +136 +129+1201142 879 125.57

The standard deiaton fo dudil staff (2-T) (92-5) SNO 22 122 12.76 -3.57 509.47 2.04 108.76 -22.57 103 1.43 127 10.43 136 3.43 11.76 129 -5.57 16.43 31.04 269.90 E945.71 120 T५2- M879 125.57 8(945.71) (7-1) 945.71 Jist42 15762 12.55 ) The Pooled Estimate f the Populatron Varianfe: pokd 2 n,+n2 (6-1X(.23) +(7-)(1255) 6+7-2 (5)(126 13) + (5) (157762) t.

6.30.65+945.61 1576.36 11 -)6=V143.30 143.30 1.97 %3D poded (C)The test statistic: C-7,)-(M-4y) Ho poted n Ho: M,-My <O HaiM,-M,70 (141.83-125.57)-(0) H-4 143.30 - =(16.26). l1-97 (0.5567) = 2. 440 d) DeGsion: 2.4472:200 tcalculaled Therefse Reyèct the mull e) The P-value ie From Excel Pvalue :azTDIST (2.44,11,1) - 0.016411

(eCstmate p-value. Between 0.01 and o.025 is lies befween to 220 t8 a 2.718 I degree of treadee from T-tabe. Between 0.001 and o.005 4.025 to 3.106 for a fom is lies betwees I| degree of freatm 1-table. Between 0.005 and 0.01 is lies belween 3.106 to 2-718fr a t-table I degree of decoden from Between 0.025 and 0.05 is lies bebween 2.201 1796for a to I| degree f freedom fom t-table.