Bank of America’s Consumer Spending Survey collected data on annual credit cardcharges in seven different categories of expenditures: transportation, groceries, diningout, household expenses, home furnishings, apparel, and entertainment. Using data froma sample of 42 credit card accounts, assume that each account was used to identify theannual credit card charges for groceries (population 1) and the annual credit card chargesfor dining out (population 2). Using the difference data, the sample mean difference wasd = $850, and the sample standard deviation was sd = $1123.a. Formulate the null and alternative hypotheses to test for no difference between thepopulation mean credit card charges for groceries and the population mean credit cardcharges for dining out.
Bank of America’s Consumer Spending Survey collected data on annual credit card
charges in seven different categories of expenditures: transportation, groceries, dining
out, household expenses, home furnishings, apparel, and entertainment. Using data from
a sample of 42 credit card accounts, assume that each account was used to identify the
annual credit card charges for groceries (population 1) and the annual credit card charges
for dining out (population 2). Using the difference data, the sample mean difference was
d = $850, and the sample standard deviation was sd = $1123.
a. Formulate the null and alternative hypotheses to test for no difference between the
population mean credit card charges for groceries and the population mean credit card
charges for dining out.
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