Question 1: (60 points)

A large t-shirt maker collected data on the annual expenses of men and women on the purchase of shirts. The sample includes 600 observations, 300 of them for men and 300 for women. The data file is named ex1q1.xlsx

The variable expense includes the annual expenditure on shirts in dollars.

The gender variable is equal to 0 for women and 1 for men.

1.According to last year expenditures, men spend an average of $800 on purchasing shirts. We would like to see if this year's data are consistent with past findings.

(10 points) Write the research hypothesis

(10 points) What test should be run to answer this question?

(10 points) Run the test and determine if the findings are significant. Assume that the data distribution is normal. Report the p-value and your conclusion. Remember that we are only interested in men expenditures!

2.The Company is examining the allocation of its resources between the production of men's shirts and the production of women's shirts. For this purpose, researchers are interested in examining whether women spend more than men.

(10 points) Write the research hypothesis

(10 points) What test should be run to answer this question?

(10 points) Run the test and determine if women spend significantly more than men. Assume that the data distribution is normal and deviation between men and women is equal.