Do men really spend more money on St. Patrick’s Day as compared to women? A recent survey found that men spend an average of $43.87 while women spend an average of $29.54 (USA Today, March 17, 2009). Assume that these data were based on a sample of 100 men and 100 women and the population standard deviations of spending for men and women are $32 and $25, respectively.
a. Specify the competing hypotheses to determine whether men spend more money than women spend on St. Patrick’s Day.
b. Calculate the value of the test statistic.
c. Calculate the p-value.
d. At the 1% significance level, do men spend more money than women spend on St. Patrick’s day? Explain.