In mid-July, some businesses like to remind us that the holiday seasons are coming soon. Just like these businesses, the following questions will immerse you in the festive spirit and will (hopefully!) make you forget the heat waves. An article published in 2016 published the results of a survey on Canadians’ behaviour during this period. You are asked to answer the following questions
(a) From the data in the article, explain how we can show that the average amount planned to spend in 2016 for the group of 35+ years old is greater than $680,58 in the sample. Assume that there are 450 people that are between 18 and 34 years old in the sample.
(b) Using the article in reference, can we affirm that in 2016 the gap between the average amount planned to spend between the 18-34 years old and the 35+ years old is greater than 275 $ in the population, in favour of the 35+ years old? Assume the sample’s standard deviation is 150 $ among the 18-34 years old and that the sample’s standard deviation is 200 $ among the 35+ years old. You can also assume that the populations are normal. Use a significance level of α = 0, 01.
(c) Build and interpret a 98 % confidence interval that estimates the gap between the average amount planned to spend between the 18-34 years old and the 35+ years old in 2016. Could we use this interval to find the conclusion of the hypothesis test performed in (b)?
In mid-July, some businesses like to remind us that the holiday seasons are coming soon. Just like these businesses, the following questions will immerse you in the festive spirit and will (hopefully!) make you forget the heat waves. An article published in 2016 published the results of a survey on Canadians’ behaviour during this period. You are asked to answer the following questions
(a) From the data in the article, explain how we can show that the average amount planned to spend in 2016 for the group of 35+ years old is greater than $680,58 in the sample. Assume that there are 450 people that are between 18 and 34 years old in the sample.
(b) Using the article in reference, can we affirm that in 2016 the gap between the average amount planned to spend between the 18-34 years old and the 35+ years old is greater than 275 $ in the population, in favour of the 35+ years old? Assume the sample’s standard deviation is 150 $ among the 18-34 years old and that the sample’s standard deviation is 200 $ among the 35+ years old. You can also assume that the populations are normal. Use a significance level of α = 0, 01.
(c) Build and interpret a 98 % confidence interval that estimates the gap between the average amount planned to spend between the 18-34 years old and the 35+ years old in 2016. Could we use this interval to find the conclusion of the hypothesis test performed in (b)?
