Question

Asked Nov 14, 2019

16 views

*Split the Bill?*

A recent study was conducted to compare the cost of restaurant meals when people pay individually versus splitting the bill as a group. In the experiment 48 subjects were randomly assigned to eight groups of six diners each. Half of the people were told they they would each be responsible for individual meals costs and the other half were told to split the cost equally among the six people at the table. The data in **SplitBill** includes the cost of what each person ordered (in Israeli shekels) and the payment method (*Individual* or *Split*).

Use *StatKey* or other technology to construct a randomization distribution using these data to test whether there is sufficient evidence to conclude that the mean cost is lower when diners are paying individually than when they split the bill equally.

Here is the link to the data:

http://www.lock5stat.com/datasets/SplitBill.txt

Step 1

Let µ_{1} and µ_{S} represent the mean cost of bill in the individual and split situations, respectively. Also, the corresponding sample means are denoted as x_{1} bar and x_{s} bar, respectively.

The test hypotheses are given below:

*Null hypothesis:*

H_{0}:µ_{1}= µ_{S}.

*Alternative hypothesis: *

H_{a}:µ_{1}< µ_{S}.

Step 2

Step-by-step procedures to obtain the difference in mean using StatKey software:

- Click on
**Randomization Test for a Difference in Means.** - Click on
**Upload file**, select - Select
**Cost**and**Payment**. - Click on
**Generate 1000 Samples**. - Click on
**Left Tail.** - Select
**cutoff value**and enter**&nd...**

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