Q-Mart is interested in comparing customers who used its own charge card with those who use other types of credit cards. Q-Mart would like to know if customers who use the Q-Mart card spend more money per visit, on average, than customers who use some other type of credit card. They have collected information on a random sample of 38 charge customers and the data is presented below. On average, the person using a Q-Mart card spends $192.81 per visit and customers using another type of card spend $104.47 per visit.
-(A) Given the information above, what is and
for this comparison? Also, does this represent a one-tailed or a two-tailed test? Explain your answer.
(B) What are the degrees of freedom for the t-statistic in this calculation? Explain how you would calculate the degrees of freedom in this case.
(C) What is the assumption in this case that allows you to use the pooled standard deviation for this test?
(D) Using a 5% level of significance, is there sufficient evidence for Q-Mart to conclude that customers who use the Q-Mart card charge, on average, more than those who use another charge card? Explain your answer.
(E) Using a 1% level of significance, is there sufficient evidence for Q-Mart to conclude that customers who use the Q-Mart card charge, on average, more than those who use another charge card? Explain your answer.
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