Business Statistics

344 Business Statistics

Step 3: Set the level of signicance

 has been specied as 0.05.

Step 4: Set the decision rule

Value of  = 0.05. The critical values of z from the z distribution table is ±1.96.

Therefore, the hypothesis will be rejected if the observed value of z is less than

–1.96 and greater than +1.96.

Step 5: Collect the sample data

The sample data is as follows:

n

1

= Size of sample 1 = 35

n

2

= Size of sample 2 = 40

2

1

s =

Variance of sample 1 = 2.1815

2

2

s =

Variance of sample 2 = 3.0769



1

= Mean of the sample 1 = 62.37



2

= Mean of the sample 2 = 63

Step 6: Analyse the data

The z formula for the difference between the mean values of two ...