The following 5 questions are based on this information: An economist claims that average weekly food expenditure of households in City 1 is more than that of households in City 2. She surveys 35 households in City 1 and obtains an average weekly food expenditure of $164. A sample of 30 households in City 2 yields an average weekly expenditure of $159. Historical data reveals that the population standard deviation for City 1 and City 2 are $12.50 and
$9.25, respectively. City 1

City 2

x1(bar)=164

x2 (bar) =159

σ(1)=12.5

σ(2) =9.25

n(1)=35

n2=30

Let μ(1) be the mean weekly food expenditure for City 1 and μ(2) be that for
City 2.

Question 1
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To test the economist’s claim, the competing hypotheses should be formulated as
Select one:

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a. H0:μ1­μ2>0 versus Ha:μ1­μ2≤0
b. H0:μ1­μ2≥0 versus Ha:μ1­μ20

Question 2

The standard error of x(1)bar­ x(2) bar is

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a. 0.82
b. 2.70
c. 12.5
d. 9.25

Question 3

The value of the test statistics is

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a. 0.40
b. 1.85
c. 0.54
d. 27.78

Question 4

The p­value of the test is

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a. 0.34
b. 0.03
c. 0.29
d. 0.08

Question 5

At α=0.05,

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Select one:
a. We can reject H(0) in favor of H(a)
b. We cannot reject H(0)
c. We can conclude that average weekly food expenditures in City 1 is less than

that of City 2