Question

1.) A random sample of 9 recent college graduates is taken. They attend a new training method in order to increase monthly savings per month. The data in the following table shows their savings before and after the training. Test the claim that the training is increasing their monthly savings per month. Use a -0.01. Before After Training Training 287 285 226 324 218 271 238 268 240 259 284 277 202 240 268 228 290 298 a. Step 1: Write the hypotheses and label the claim. b. Step 2: P-Value Method Hot H: c. Step 3. Practical Conclusion.

Answer 1

Date: 16/07/2019 Answer To test the hypothesis is that the training is increasing their monthly savings per month at 1% significance level. a) The null and alternative hypothesis is Ho 0 b) The f-test statistics is, By using Excel software, find t-test statistics with the help of following steps: 1) 2) Import the data Select t-test Paired Two Samples for Means from Data Analysis in Data menu Select Variable 1 Range and Variable 2 Range Give Hypothesized Mean Difference 3) 4)

Select Labels and give Alplha Choose Output Range from Output options Click Ok 5) 6) 7) t-Test: Paired Two Sample for Means Before 272.2222222 250.3333333 1074.5 After Mean Variance 839.9444444 Observations 9 9 Pearson Correlation Hypothesized Mean Difference df t Stat P(T<=t) one-tail t Critical one-tail P(T<=t) two-tail t Critical two-tail 0.183726003 8 1.659730983 0.067775147 2.896459446 0.135550293 3.355387331 From the Excel output, the t-test statistics is 1.660

The p-value for this test is, From the Excel output, the p-value for this test is 0.0678 1 c) Decision The conclusion is that p-value in this context is higher than 0.01 which is 0.0678, so the null hypothesis is not rejected at 1% level of significance. There is insufficient evidence to indicate that the training is increasing their monthly savings per month. The result is not statistically significant.