Do Men Really Spend More Money on St

question 97

Multiple Choice

Do men really spend more money on St. Patrick's Day as compared to women? A recent survey found that men spend an average of $43.87 while women spend an average of $29.54. Assume that these data were based on a sample of 100 men and 100 women and the population standard deviations of spending for men and women are $32 and $25, respectively. Using 1% confidence level, which of the following is the correct conclusion for this test?

• A) Reject H₀: µ₁ − µ₂ ≤ 0 and therefore do not conclude that on average men spend more money than women on St. Patrick's Day.
• B) Do not reject H₀: µ₁ − µ₂ ≤ 0 and therefore conclude that on average men spend more money than women on St. Patrick's Day.
• C) Reject H₀: µ₁ − µ₂ ≤ 0 and therefore conclude that on average men spend more money than women on St. Patrick's Day.
• D) Do not reject H₀: µ₁ − µ₂ ≤ 0 and therefore do not conclude that on average men spend more money than women on St. Patrick's Day.

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Definitions:

Insured Risk

A risk that has been covered by an insurance policy, transferring the financial burden of a potential loss from the insured to the insurer.

Asymmetric Information

Asymmetric information occurs when one party in a transaction has more or better information than the other, leading to an imbalance in the decision-making process.

Unsuspecting Buyer

A consumer who purchases goods or services without being aware of all the relevant information, often leading to disadvantageous situations.

Auto Transmission

A type of vehicle transmission that automatically changes gear ratios as the vehicle moves, without input from the driver.