## Question 687:

I would like to determine whether Meijer or Kroger has lower prices on average for families.I randomly speak with 100 customers who are purchasing groceries for their families from

Kroger and obtain their total amounts spent. I then select another 100 customers at random

who purchased groceries for their families from Meijer and record their amounts spent. Use

the appropriate output below to determine if either store has better prices, on average, for

people purchasing groceries for their families.

A. Identify the correct output from below.

B. Complete the exercise to determine if one store is better than the other in terms of mean family grocery price using a = .05. Clearly tell which is better if you decide this is appropriate.

C. Explain why the procedure is valid.

Hypothesis test results for independent samples:

£g1 : mean of Meijer

£g2 : mean of Kroger

£g1 - £g2 : mean difference

H0 : £g1 - £g2 = 0

HA : £g1 - £g2 ¡Ú 0

(without pooled variances)

Difference Sample Mean Std. Err. DF T-Stat P-value

£g1 - £g2 -7.4626536 7.098437 195.9997 -1.0513095 0.2944

Hypothesis test results for dependent samples:

£g1 - £g2 : mean of the paired difference between Meijer and Kroger

H0 : £g1 - £g2 = 0

HA : £g1 - £g2 ¡Ú 0

Difference Sample Diff. Std. Err. DF T-Stat P-value

Meijer - Kroger -7.4626536 7.2637167 99 -1.0273877 0.3067