Question

A random sample of nine local banks show their deposits (in billions of dollars) 3 years ago and their deposits (in billions of dollars) today. At significance level of 0.05, can it be concluded that the average in deposits for the banks is greater today than it was 3 years ago? Use significance level of 0.05. Assume the variable is normally distributed.

3 years ago (Before): 11.42 8.41 3.98 7.37 2.28 1.10 1.00 0.9 1.35

  Today (After): 16.69 9.44 6.53 5.58 2.92 1.88 1.78 1.5 1.22

Please remember that Difference = After(2) - Before(1)

b) Compute the test statistic (round to 2 decimal places)

Hint: STATS-->EDIT-->1:Edit-->Upload L1, L2, L3=L2-L1

Continue with STATS-->TESTS-->2:T-Test-->Data...

c) Compute the p-value (round to 4 decimal places)

Answer 1

The statistical software output for this problem is:

On the basis of above output:

b) Test statistic = 1.67

c) p - Value = 0.0663