Question

Air matched 14 (12) Target versus Walmart: Who has the lowest prices? Given Walman almart: Who has the lowest prices Give Walmart's slogan Save Money - Live name items) currently on your household sonni er to test your suspicion you identify 20 items (all brand- and organize and store these data hela yoyiboch Target and Walmart, price cach Shopping Item Target Walmart Shopping Item Target Walmart 5.09 5.47 2.99 3.98 10.99 11.97 2.19 1.89 3.29 9.27 14.97 12.97 5.86 4,99 4.97 3.98 3.58 18.99 14.97 3.19 2.67 3.896.98 2.99 2.98 10.98 7.92 2.39 2.18 2.99 2.75 2.09 1.89 2.99 20 2.75 3.97 3.98 9.29 5.99 a) At the 0.05 level of significance, is there evidence that the mean price of items is higher at Target than at Walmart? Make sure you set up the null and alternative hypotheses properly. b) What assumption is necessary about the population distribution in order to perform this test? c) Find the p-value in (a) and interpret its meaning.

Answer 1

Null hypothesis: Ho: Ug = 0 The mean price of items is same at Target as at Walmart. Alternative hypothesis: H2-4a> 0 The mean price of items is higher at Target than at Walmart. EXCEL (Data Analysis) output:

t-Test: Paired Two Sample for Means Target Walmart 5.9125 5.5925 22.01845132 15.35144079 Mean Variance Observations Pearson Correlation Hypothesized Mean Difference 20 0.958816948 df t Stat P(T<=t) one-tail t Critical one-tail P(T<=t) two-tail t Critical two-tail 0.984302763 0.168667934 1.729132792 0.337335868 2.09302405 Conclusion: Since t(=0.984)<tevit (= 1.729), then fail to reject the null hypothesis. We cannot conclude that the mean price of items is higher at Target than at Walmart.

The dependent variable must be continuous. The observations are independently of one another. The dependent variable should be approximately normally distributed. The dependent variable should not contain any outliers. p-value = 0.1687. The probability of chance that the null hypothesis is true.