Solution to 1
(1) Null and Alternative Hypotheses
The following null and alternative hypotheses need to be tested:
Ho:
Ha:
This corresponds to a two-tailed test, for which a t-test for two population means, with two independent samples, with unknown population standard deviations will be used.
(2) Rejection Region
Based on the information provided, the significance level is α=0.01, and the degrees of freedom are df=128. In fact, the degrees of freedom are computed as follows, assuming that the population variances are equal:
Hence, it is found that the critical value for this two-tailed test is tc=2.615, for α=0.01 and df=128.
The rejection region for this two-tailed test is R={t:∣t∣>2.615}.
(3) Test Statistics
Since it is assumed that the population variances are equal, the t-statistic is computed as follows:
(4) Decision about the null hypothesis
Since it is observed that ∣t∣=4.799>tc=2.615, it is then concluded that the null hypothesis is rejected.
Using the P-value approach: The p-value is p=0, and since p=0<0.01, it is concluded that the null hypothesis is rejected.
(5) Conclusion
It is concluded that the null hypothesis Ho is rejected. Therefore, there is enough evidence to claim that population mean μ1 is different than μ2, at the 0.01 significance level.
Confidence Interval
The 99% confidence interval is 1.081<μ1−μ2<−0.319.
Graphically
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