Question

Amc Theaters conducted a market research survey to compare the average movie spending levels of people in Atlanta and New York. The results from a sample of 100 people in each city are provided. The average amount spent in New York is $15 with a standard deviation of $9.68, while in Atlanta, the average amount spent is $18 with a standard deviation of $9.68. The significance level is set at 0.05. Based on this information, what is the appropriate conclusion?

A. Reject the null and conclude that the average movie spending levels in the two cities are different.
B. Reject the null and conclude that the average movie spending levels in the two cities are the same.
C. Cannot reject the null and conclude that the average movie spending levels in the two cities are the same.
D. Cannot reject the null and conclude that the average movie spending levels in the two cities are different.

Answer 1

To compare the average movie spending levels in Atlanta and New York, a hypothesis test needs to be performed. However, the necessary information is not provided to determine the appropriate conclusion.

Step-by-step explanation:

To compare the average movie spending levels in Atlanta and New York, we need to perform a hypothesis test.

Null Hypothesis (H0): The average movie spending levels in Atlanta and New York are the same.

Alternative Hypothesis (H1): The average movie spending levels in Atlanta and New York are different.

Using a significance level of 0.05, we can compare the sample means and standard deviations to determine if we can reject the null hypothesis. After performing the appropriate statistical test, if the calculated test statistic falls in the rejection region, we reject the null hypothesis and conclude that the average movie spending levels in the two cities are different. However, if the calculated test statistic does not fall in the rejection region, we fail to reject the null hypothesis and conclude that the average movie spending levels in the two cities are the same.

In this case, we do not have the sample means or any other relevant information required to perform the hypothesis test, so we cannot determine the appropriate conclusion based on the information provided.