Question

A ski company in Vail owns two ski shops, one on the west side and one on the east side of Vail. Ski hat sales data (in dollars) for a random sample of 5 Saturdays during the 2004 season showed the following results. Is there a significant difference in sales dollars of hats between the west side and east side stores at the 10 percent level of significance?

Saturday Sales Data ($) for Ski Hats
Saturday	East Side Shop	West Side Shop
1	524	524
2	432	702
3	617	610
4	584	571
5	499	549

(a)	Choose the appropriate hypotheses. Assume μd is the difference in average sales between the east side and west side stores.

	a. H0: μd = 0 versus H1: μd ≠ 0.
	b. H0: μd ≠ 0 versus H1: μd = 0.
	a b

(b)	State the decision rule for a 5 percent level of significance. (Round your answers to 3 decimal places.)

Reject the null hypothesis if tcalc < _____ or tcalc > _____.

(c-1)

Find the test statistic tcalc. (Round your answer to 2 decimal places. A negative value should be indicated by a minus sign.)

tcalc

(c-2)	What is your conclusion?
	We  (Click to select)  cannot / can  conclude that there is a significant difference in sales dollars of hats between the west side and east side stores.?

Answer 1

Let us denote the difference

d = sales dollars of hats in the east side - sales dollars of hats in the west side