An article discussed the opening of a Market. The following data compared the prices of some kitchen staples at the new Market (group 1) and at the old Market (group 2) located 15 blocks away. ITEM GROUP 1 GROUP 2 HALF GALLON MILK 16.8 22.0 DOZEN EGGS 11.7 15.2 ORANGE JUICE (64OZ) 15.6 18.7 HEAD OF LETTUCE 16.7 15.6 1LB GROUND BEEF 17.5 20.8 6OZ TUNA 18.1 19.5 1LB APPLES 14.1 17.0 LINGUINI 21.8 19.5 SALMON STEAK 1LB 13.9 16.5 WHOLE CHICKEN PER LB 20.8 24.0 A. At the 0.01 level of significance, what is the value of the test statistic? What is the critical value? What is the degree of freedom? Using the critical value approach, is there evidence that the mean price is lower at GROUP 1 than at GROUP 2? What is your conclusion? B. What assumption is necessary to perform the test in (A)?
Inverse Normal Distribution
The method used for finding the corresponding z-critical value in a normal distribution using the known probability is said to be an inverse normal distribution. The inverse normal distribution is a continuous probability distribution with a family of two parameters.
Mean, Median, Mode
It is a descriptive summary of a data set. It can be defined by using some of the measures. The central tendencies do not provide information regarding individual data from the dataset. However, they give a summary of the data set. The central tendency or measure of central tendency is a central or typical value for a probability distribution.
Z-Scores
A z-score is a unit of measurement used in statistics to describe the position of a raw score in terms of its distance from the mean, measured with reference to standard deviation from the mean. Z-scores are useful in statistics because they allow comparison between two scores that belong to different normal distributions.
An article discussed the opening of a Market. The following data compared the prices of some kitchen staples at the new Market (group 1) and at the old Market (group 2) located 15 blocks away.
ITEM GROUP 1 GROUP 2
| HALF GALLON MILK | 16.8 | 22.0 |
| DOZEN EGGS | 11.7 | 15.2 |
| ORANGE JUICE (64OZ) | 15.6 | 18.7 |
| HEAD OF LETTUCE | 16.7 | 15.6 |
| 1LB GROUND BEEF | 17.5 | 20.8 |
| 6OZ TUNA | 18.1 | 19.5 |
| 1LB APPLES | 14.1 | 17.0 |
| LINGUINI | 21.8 | 19.5 |
| SALMON STEAK 1LB | 13.9 | 16.5 |
| WHOLE CHICKEN PER LB | 20.8 | 24.0 |
A. At the 0.01 level of significance, what is the value of the test statistic? What is the critical value? What is the degree of freedom? Using the critical value approach, is there evidence that the mean price is lower at GROUP 1 than at GROUP 2? What is your conclusion?
B. What assumption is necessary to perform the test in (A)?
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