A researcher is interested in comparing the usage of bank debit cards by consumers in rural (r) and urban (u) areas. Each year for the past five years, she has surveyed 500 individuals (one-half urban, one-half rural) randomly selected from across the United States. She is specifically interested in any differences that may exist between the two groups with regard to usage. The results of the current study indicate that people in urban areas use bank debit cards 12 times per month on average( ), while those in rural areas use bank cards 10 times per month on average ( ).
-Refer to Exhibit 13.2. Given that the critical value that the test statistic is to be compared with is equal to 1.645 at a 90% significance level, which of the following statements are true?
A) The researcher should reject the null hypothesis at the 90% significance level.
B) The researcher might be able to reject the null hypothesis at the 95% level of significance.
C) The researcher cannot reject the null hypothesis at this significance level.
D) The researcher has provided evidence that people in urban areas use bank debit cards more than people in rural areas.
E) More information is needed before a decision about the null hypothesis can be made.

Question

A researcher is interested in comparing the usage of bank debit cards by consumers in rural (r) and urban (u) areas. Each year for the past five years, she has surveyed 500 individuals (one-half urban, one-half rural) randomly selected from across the United States. She is specifically interested in any differences that may exist between the two groups with regard to usage. The results of the current study indicate that people in urban areas use bank debit cards 12 times per month on average(  ), while those in rural areas use bank cards 10 times per month on average (  ).
-Refer to Exhibit 13.2. Given that the critical value that the test statistic is to be compared with is equal to 1.645 at a 90% significance level, which of the following statements are true?
A) The researcher should reject the null hypothesis at the 90% significance level. 
B) The researcher might be able to reject the null hypothesis at the 95% level of significance. 
C) The researcher cannot reject the null hypothesis at this significance level. 
D) The researcher has provided evidence that people in urban areas use bank debit cards more than people in rural areas. 
E) More information is needed before a decision about the null hypothesis can be made.

Quizplus · Accepted Answer

The test statistic is less than the critical value, so the researcher cannot reject the null hypothesis at this significance level.

A Researcher Is Interested in Comparing the Usage of Bank