QUESTION SET #1 – SOLUTIONS 9/27/16
Chick-fil-A is considering expanding into one of two states – either Ohio or Indiana. To help make the
decision, the company decided to draw samples from each state to see how much money a family
spends per month eating at fast food restaurants. A sample of 75 Ohio residents (n1) spent an average
of $103.76 a month on fast food with a variance of 11.23. A sample of 90 Indiana residents (n2) spent an
average of $97.85 a month on fast food with a variance of 7.40. Is there evidence that one state spends
more per month than the other? Use α = .05.
Sample Data
Ohio (n1) Indiana (n2)
𝑥1 = $103.76 𝑥2 = $97.85
s21 = 11.23 s22 = 7.40
n1 = 75 residents n2 = 90 residents
(1) What are the correct null and alternative hypotheses? (Hint: The question does not ask if a
specific state spends more than the other, it just asks if either spends more than the other.)
H0: μ1 = μ2
H1: μ1 ≠ μ2
(2) What is the correct critical value for this test?
