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CHAPTER 10 TWO-SAMPLE HYPOTHESIS TESTS

CHAPTER 10 TWO-SAMPLE HYPOTHESIS TESTS

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Chapter 10Two-Sample Hypothesis TestsUpload the completed assignment using the file extension format Lastname_Firstname_Week4.doc.Assignment(32 points due by 11.59 pm July 20th)Note: You can team up with one of your classmates to complete the assignment (not more than two in ateam); if you want to work on the assignment individually, that’s also fine. If you are working in teams,then only one submission is required per team; include both the team members’ last names as part of theassignment submission file name as well as in the assignment submission document.Please provide detailed solutions to the following problems/exercises (4 problems/exercises x 8 pointseach):1) Discover Card would like to test the hypothesis that the average credit score for an adult in Dallas isdifferent from the average credit score for an adult in Houston. A random sample of 40 adults in Dallashad an average credit score of 699 and a random sample of 35 adults in Houston had an average creditscore of 682. It is believed that the population standard deviation for credit scores is 44 and 41 for Dallasand Houston residents, respectively. Discover Card would like to set α = 0.05. Define Population 1 asDallas and Population 2 as Houston and use the critical value approach to test this hypothesis.2) Auto Trader Group (ATG) would like to test the hypothesis that the average age of an imported car onthe road is greater than the average age of a domestic car. The following data shows the sample size andthe average age of cars for import and domestic cars along with the population standard deviations.Sample meanSample sizePopulation standard deviation

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