Questions: A student compared organic food prices at Grocery 1 and Grocery 2. The same items were priced at each store. The first three items are shown in the accompanying Figure A. Choose the correct accompanying output ( B or C ) for the appropriate test, explaining why you chose that output. Then test the hypothesis that the population means are not equal using a significance level of 0.05. Assume that all necessary conditions for carrying out a hypothesis test hold.
Figure A and Outputs
(Figure A)
Food Grocery 1 Grocery 2
Bananas/1 lb 0.89 0.89
Grape tomatoes/1 lb 4.39 4.09
Russet potato/5 lb 4.49 4.89
(Figure B)
Paired T-Test and CI: Grocery
N Mean StDev SE Mean
Grocery 1 39 3.01 1.34 0.21
Grocery 2 39 3.13 1.38 0.22
Difference 39 -0.12 1.32 0.21
95% CI for difference: (-0.548, 0.308)
T-Test of mean difference = 0 (vs ≠): T-Value = -0.57 P-value = 0.574
(Figure C)
Two-sample T-Test and CI: Grocery 1, Grocery 2
N Mean StDev SE Mean
Grocery 1 39 3.01 1.34 0.21
Grocery 2 39 3.13 1.38 0.22
Transcript text: A student compared organic food prices at Grocery 1 and Grocery 2. The same items were priced at each store. The first three items are shown in the accompanying Figure A. Choose the correct accompanying output ( B or C ) for the appropriate test, explaining why you chose that output. Then test the hypothesis that the population means are not equal using a significance level of 0.05. Assume that all necessary conditions for carrying out a hypothesis test hold.
Figure A and Outputs
\begin{tabular}{|lll|}
\hline (Figure A) & & \\
\hline Food & Grocery 1 & Grocery 2 \\
Bananas/1 lb & 0.89 & 0.89 \\
Grape tomatoes/1 lb & 4.39 & 4.09 \\
Russet potato/5 lb & 4.49 & 4.89 \\
\hline
\end{tabular}
(Figure B)
\begin{tabular}{|lrrrr|}
\multicolumn{5}{c|}{ Paired T-Test and Cl: Grocery } \\
\hline & N & Mean & StDev & SE Mean \\
Grocery 1 & 39 & 3.01 & 1.34 & 0.21 \\
Grocery 2 & 39 & 3.13 & 1.38 & 0.22 \\
Difference & 39 & -0.12 & 1.32 & 0.21 \\
\hline
\end{tabular}
95\% Cl for difference: ( $-0.548,0.308$ )
T -Test of mean difference $=0($ vs $\neq): T$-Value $=-0.57 \quad$ P-value $=0.574$
(Figure C)
Two-sample T-Test and Cl: Grocery 1, Grocery 2
\begin{tabular}{|lrrrr|}
\hline & N & Mean & StDev & SE Mean \\
Grocery 1 & 39 & 3.01 & 1.34 & 0.21 \\
Grocery 2 & 39 & 3.13 & 1.38 & 0.22 \\
\hline
\end{tabular}
Solution
Solution Steps
Step 1: Define the Hypothesis
We are testing the hypothesis that the population means of organic food prices at Grocery 1 and Grocery 2 are equal. The null hypothesis (\(H_0\)) and the alternative hypothesis (\(H_a\)) are defined as follows:
\[
H_0: \mu_1 - \mu_2 = 0 \quad \text{(the means are equal)}
\]
\[
H_a: \mu_1 - \mu_2 \neq 0 \quad \text{(the means are not equal)}
\]
Step 2: Calculate the Test Statistic
The mean difference (\(D\)) between the paired samples is calculated as:
\[
D = \bar{x}_1 - \bar{x}_2 = -0.0333
\]
The standard deviation of the differences is:
\[
s_D = 0.3512
\]
The standard error (SE) of the mean difference is calculated using:
\[
SE = \frac{s_D}{\sqrt{n}} = \frac{0.3512}{\sqrt{3}} = 0.2028
\]
The test statistic (\(t\)) is then calculated as:
\[
t = \frac{D}{SE} = \frac{-0.0333}{0.2028} = -0.1644
\]
Step 3: Determine the Critical Value and P-Value
For a two-tailed test at a significance level of \(\alpha = 0.05\) with \(df = n - 1 = 2\), the critical value is: