Questions: Does the average Presbyterian donate more than the average Catholic in church on Sundays? The 49 randomly observed members of the Presbyterian church donated an average of 20 with a standard deviation of 5. The 53 randomly observed members of the Catholic church donated an average of 17 with a standard deviation of 9. What can be concluded at the α=0.05 level of significance?

Does the average Presbyterian donate more than the average Catholic in church on Sundays? The 49 randomly observed members of the Presbyterian church donated an average of 20 with a standard deviation of 5. The 53 randomly observed members of the Catholic church donated an average of 17 with a standard deviation of 9. What can be concluded at the α=0.05 level of significance?
Transcript text: Does the average Presbyterian donate more than the average Catholic in church on Sundays? The 49 randomly observed members of the Presbyterian church donated an average of $\$ 20$ with a standard deviation of $\$ 5$. The 53 randomly observed members of the Catholic church donated an average of $\$ 17$ with a standard deviation of $\$ 9$. What can be concluded at the $\alpha=0.05$ level of significance?
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Solution

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Solution Steps

Step 1: Standard Error Calculation

The standard error \( SE \) is calculated using the formula:

\[ SE = \sqrt{\frac{s_1^2}{n_1} + \frac{s_2^2}{n_2}} = \sqrt{\frac{5^2}{49} + \frac{9^2}{53}} = \sqrt{\frac{25}{49} + \frac{81}{53}} \approx 1.575 \]

Step 2: Test Statistic Calculation

The test statistic \( t \) is calculated using the formula:

\[ t = \frac{\bar{x}_1 - \bar{x}_2}{SE} = \frac{20.0 - 17.0}{1.575} \approx 1.897 \]

Step 3: Degrees of Freedom Calculation

The degrees of freedom \( df \) for Welch's t-test is calculated using the formula:

\[ df = \frac{\left(\frac{s_1^2}{n_1} + \frac{s_2^2}{n_2}\right)^2}{\frac{\left(\frac{s_1^2}{n_1}\right)^2}{n_1 - 1} + \frac{\left(\frac{s_2^2}{n_2}\right)^2}{n_2 - 1}} \]

Substituting the values:

\[ df = \frac{\left(\frac{25}{49} + \frac{81}{53}\right)^2}{\frac{\left(\frac{25}{49}\right)^2}{48} + \frac{\left(\frac{81}{53}\right)^2}{52}} \approx 99.999 \]

Step 4: p-value Calculation

The p-value is calculated based on the test statistic. For \( t \approx 1.897 \) and \( df \approx 99.999 \):

\[ P = 1 - T(t) \approx 0.029 \]

Step 5: Conclusion

Since the p-value \( P \approx 0.029 \) is less than the significance level \( \alpha = 0.05 \), we reject the null hypothesis. Thus, we conclude that there is sufficient evidence to suggest that the average Presbyterian donates more than the average Catholic.

Final Answer

The results are statistically significant at \( \alpha = 0.05 \), so there is sufficient evidence to conclude that the population mean amount of money that Presbyterians donate is more than the population mean amount of money that Catholics donate.

\(\boxed{\text{The results are statistically significant at } \alpha = 0.05.}\)

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