Question: Case Study 2 A study was made to compare the cost of supporting a family of four for a year in different foreign cities. The
Case Study 2 A study was made to compare the cost of supporting a family of four for a year in different foreign cities. The lifestyle of living at home on an annual income of $ 75,000 was the standard against which living in foreign cities was compared. A comparable living standard in Kuala Lumpur and Bangkok was attained for about $ 64,000. Suppose an executive wants to determine whether there is any difference between Kuala Lumpur and Bangkok in the average annual cost of supporting her family of four in the manner to which they are accustomed. She uses the following data, randomly gathered from 11 families in each city, to test this difference. She assumes the annual cost is normally distributed and the population variances are equal. What does the executive find?

Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
