Fairfield Homes is developing two parcels near Pigeon Fork, Tennessee. In order to test different advertising approaches, it uses different media to reach potential buyers. The mean annual family income for 12 people making inquiries at the first development is $145,000, with a standard deviation of $38,000. A corresponding sample of 27 people at the second development had a mean of $182,000, with a standard deviation of $32,000. Assume the population standard deviations are the same.
1) State the decision rule for .02 significance level: H0: μ1 = μ2; H1 : μ1 ≠ μ2. (Negative values should be indicated by a minus sign. Round your answers to 3 decimal places.)
Reject H0 if t is not between ? and ?.
(2) Compute the value of the test statistic. (Negative value should be indicated by a minus sign. Round your answer to 2 decimal places.)
Value of the test statistic= ?
(3) At the .02 significance level, can Fairfield conclude that the population means are different?
REJECT OR DO NOT REJECT H0. Fairfield CAN OR CANNOT conclude that the population means are different.