A Random Sample of 89 Tourists in Chattanooga Showed That $\alpha$

question 27

Essay

A random sample of 89 tourists in Chattanooga showed that they spent an average of $2,860 (in a week) with a standard deviation of $126; and a sample of 64 tourists in Orlando showed that they spent an average of $2,935 (in a week) with a standard deviation of $138. We are interested in determining if there is any significant difference between the average expenditures of those who visited the two cities?
a.Determine the degrees of freedom for this test.
b.Compute the test statistic.
c.Compute the p-value.
d.What is your conclusion? Let $\alpha$ = .05.

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Definitions:

Cost of Borrowed Funds

The interest rate or expense a company or individual pays for borrowing money.

Residual Value

Residual value is the estimated value that an asset will have at the end of its useful life, crucial in leasing and depreciation calculations.

Reduce Uncertainty

Strategies or actions taken to minimize the unpredictability or variability in outcomes.

Leasing

A financial arrangement where a lessee pays the lessor for the use of an asset for a specified period of time, without owning the asset.