A marketing firm asked a random set of married women and married men how much they were willing to spend for jewelry as a present for their spouse. Can the firm conclude, at = 0.05, that the two groups have a different willingness to spend?
A) No, because the test value -0.65 is inside the noncritical region
B) Yes, because the test value -5.99 is outside the noncritical region
C) Yes, because the test value -0.75 is inside the noncritical region
D) No, because the test value -0.75 is outside the noncritical region

Question

A marketing firm asked a random set of married women and married men how much they were willing to spend for jewelry as a present for their spouse. Can the firm conclude, at  = 0.05, that the two groups have a different willingness to spend? 
A) No, because the test value -0.65 is inside the noncritical region 
B) Yes, because the test value -5.99 is outside the noncritical region 
C) Yes, because the test value -0.75 is inside the noncritical region 
D) No, because the test value -0.75 is outside the noncritical region

Quizplus · Accepted Answer

The question is asking whether the two groups have a different willingness to spend, which is a two-tailed test. The critical region is split into two equal regions (0.025 on each side) for a two-tailed test, and the test statistic should fall outside these regions to reject the null hypothesis. The calculated test statistic is -5.99, which is much smaller than the critical values of -1.96 and 1.96 corresponding to the 0.025 level of significance. Therefore, we can reject the null hypothesis and conclude that the two groups have a different willingness to spend.

A Marketing Firm Asked a Random Set of Married Women