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

Question
Asked Nov 14, 2019
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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

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Expert Answer

Step 1

Let µ1 and µS represent the mean cost of bill in the individual and split situations, respectively. Also, the corresponding sample means are denoted as x1 bar and xs bar, respectively.

The test hypotheses are given below:

Null hypothesis:

H01= µS.

Alternative hypothesis:

Ha1< µS.

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...
StatKey
Randomization Test for a Difference in Means
Solitil.c
Cost y Paym
Show Data Table
tDat
Upload ie
Change Colum
Randomization method aocae Crps
Generate 1000 Samples
Generate 1 Sample
Generae 10 Samples
Generate 100 Samles
Rese Pl
Randomization Detplot of y-
Original Sample
Null hypothesis:
60
pl23
Len TTeTe
236
50
40
37.292
30
Randomization Sample ow D Table
000048
24m2
201
20
10
43.95
nu h
13.630
help_outline

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StatKey Randomization Test for a Difference in Means Solitil.c Cost y Paym Show Data Table tDat Upload ie Change Colum Randomization method aocae Crps Generate 1000 Samples Generate 1 Sample Generae 10 Samples Generate 100 Samles Rese Pl Randomization Detplot of y- Original Sample Null hypothesis: 60 pl23 Len TTeTe 236 50 40 37.292 30 Randomization Sample ow D Table 000048 24m2 201 20 10 43.95 nu h 13.630

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