The average amount spent at a fast-food restaurant in California was $3.30, with a standard deviation of $.40. Yet in Georgia, the average amount spent at a fast-food restaurant was $3.25, with a standard deviation of $.10. What do these statistics tell you about fast-food consumption patterns in these two states?

Question

The average amount spent at a fast-food restaurant in California was $3.30, with a standard deviation of $.40. Yet in Georgia, the average amount spent at a fast-food restaurant was $3.25, with a standard deviation of $.10. What do these statistics tell you about fast-food consumption patterns in these two states?

Answer 1

Ho: mean1 = mean2

Ha: mean1 ≠ mean2

Z = (mean1 - mean2)/standard error (SE) of difference between means

SEdiff = √(SEmean1^2 + SEmean2^2)

SEm = SD/√n

If only one SD is provided, you can use just that to determine SEdiff.

Find table in the back of your statistics text labeled something like "areas under normal distribution" to find the proportion/probability related to the Z score to see if there is a significant difference in terms of whatever level of significance level you choose.