Discuss the below:
Q: You want to know if there is a difference in price between imported and domestic beers. You go to your local supermarket and record the sales price and country of origin of 68 different beers. A t-test is run, the results of which appear below.
t-Test: Two-Sample
import domestic
Mean 5.862666667 4.728679
Variance 0.815392381 2.205523
Observations 15 53
Hypothesized Mean Difference 0
df 66
t Stat 3.660440824
P(T<=t) one-tail 0.000381141
t Critical one-tail 1.685953066
P(T<=t) two-tail 0.000762281
t Critical two-tail 2.024394234
1 Why would it be better to use a one-tailed test in this case?
2 You selected a one-tailed test, what are the null and experimental hypotheses (H0 and H1)?
3 In the beer price study, what is the critical value of t used in a one-tailed test?
4 Is there a significant difference between the price of domestic versus imported beers? What does this mean?
Descriptive statistics for both prices of beers were calculated. The results showed the following:
imports imports domestic
Mean 5.862666667 4.728679
Median 5.68 4.1
Mode 5.99 4.02
Standard Deviation 0.902990798 1.4851
Range 3.17 5.43
Minimum 4.63 2.36
Maximum 7.8 7.79
Count 15 53
Confidence Level(95.0%) 0.500060081 0.409344
5 What is the one BEST measure of central tendency (mean, median, or mode) to use for these data?