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:

Foreign Subsidiary

A company that is owned or controlled by another company (parent company) and is located in a different country.

Functional Currency

The form of money prevalent in the primary financial setting where an organization conducts its operations and accrues cash flows.

Common Shares

Securities representing ownership in a corporation, providing voting rights and entitling holders to a share of the company's success through dividends and appreciation.

Hyper-Inflationary

Refers to an economic situation characterized by extremely high and typically accelerating inflation rates, leading to a rapid erosion of the currency's value.