Question

A technician compares repair costs for two types of microwave ovens (type I and type II). He believes that the repair cost for type I ovens is greater than the repair cost for type II ovens. A sample of 38 type I ovens has a mean repair cost of $78.60, with a standard deviation of $16.27. A sample of 31 type II ovens has a mean repair cost of $75.32, with a standard deviation of $22.38. Conduct a hypothesis test of the technician's claim at the 0.01 level of significance. Let μ1 be the true mean repair cost for type I ovens and μ2 be the true mean repair cost for type II ovens.

Answer 1