A Recent Study Compared the Time Spent Together by Single

question 7

Multiple Choice

A recent study compared the time spent together by single and dual-earner couples. According to the records kept during the study, the mean amount of time spent together watching TV among single-earner couples was 64 minutes per day, with a standard deviation of 15.5 minutes. For the dual-earner couples, the mean time was 48.4 and the standard deviation was 18.1. At a 0.01 significance level, can we conclude that the single-earner couples on average spend more time watching TV together? There were 20 single-earner and 12 dual-earner couples studied. State the decision rule, the value of the test statistic, and your decision.

• A) Reject if t > 2.457, t = 2.49, single-earner couples spend more time watching TV together.
• B) Reject if t > 2.508, t = 0.96, insufficient evidence to say that single-earner couples spend more time watching TV together.
• C) Reject if t > 2.797, t = 2.57, single-earner couples spend more time watching TV together.
• D) Reject if t > 2.042, t = 1.96, insufficient evidence to say that single-earner couples spend more time watching TV together.
• E) Reject if t > 2.485, t = 2.77, single-earner couples spend more time watching TV together.

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Definitions:

Surplus Funds

Additional money or assets available after all expenses have been accounted for, often used for investment or saving.

Scheduled To Be Paid

Refers to payments that are planned and outlined to be made on specific dates as per a payment agreement or schedule.

Invested

The process of distributing funds with the aim of earning returns or profits.

Payment Stream

A series of payments made over time, such as monthly mortgage or loan payments, or regular investment contributions.