In order to study buying habits of consumers, markets A and B are chosen. 400 women are chosen at random in market A. Their average monthly expenditure on food is $250 with a standard deviation of $40. The figures are $220 and $55 respectively for another sample of 400 women chosen at random from Market B. We wish to test with 95% confidence whether the average monthly expenditures of the two populations of shoppers are equal.
Answer the following two questions.
- What is the value of your test statistic?
- True or False. The monthly expenditure of populations of markets A and B are different.