Sony Would Like to Test the Hypothesis That the Average

question 17

Multiple Choice

Sony would like to test the hypothesis that the average age of a PlayStation user is different from the average age of an Xbox user. A random sample of 36 PlayStation users had an average age of 34.2 years while a random sample of 30 Xbox users had an average age of 32.7 years. Assume that the population standard deviation for the age of PlayStation and Xbox users is 3.9 and 4.0 years, respectively. Sony would like to set α = 0.10. The conclusion for this hypothesis test would be that because the absolute value of the test statistic is

• A)more than the absolute value of the critical value, we can conclude that the average age of PlayStation users is equal to the average age of Xbox users.
• B)more than the absolute value of the critical value, we can conclude that the average age of PlayStation users is different from the average age of Xbox users.
• C)less than the absolute value of the critical value, we cannot conclude that the average age of PlayStation users is equal to the average age of Xbox users.
• D)less than the absolute value of the critical value, we cannot conclude that the average age of PlayStation users is different from the average age of Xbox users.

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Definitions:

Invisible Hand

A concept introduced by Adam Smith to describe the self-regulating nature of the market through individuals' pursuit of their own interests.

Consumption

The act of using goods and services to satisfy needs and desires.

Entrepreneurs

Individuals who take on the risk of starting and managing a business, often bringing innovation and new products or services to the market.

Economical

Pertains to the efficient use or management of resources to avoid waste and reduce expenses.