Question

Ms. Lisa Monnin is the budget director for Nexus Media Incorporated. She would like to compare the daily travel expenses for the sales staff and the audit staff. She collected the following sample information. Sales ($) 131 135 146 165 136 142 Audit ($) 130 102 129 143 149 120 139 At the 0.10 significance level, can she conclude that the mean daily expenses are greater for the sales staff than the audit staff?

State the decision rule. (Round your answer to 3 decimal places.)

Answer 1

To compare the mean daily expenses of sales and audit staff, a hypothesis test is required. The decision rule at a 0.10 significance level involves rejecting the null hypothesis if the calculated t-value is greater than the critical t-value from the t-distribution table.

Step-by-step explanation:

To determine whether the mean daily expenses are greater for the sales staff than for the audit staff, Ms. Lisa Monnin needs to conduct a hypothesis test comparing the means of two independent samples. The decision rule at the 0.10 significance level for a one-tailed t-test is to reject the null hypothesis if the t-statistic is greater than the critical t-value from the t-distribution table. The decision rule is based on a calculated t-value, which requires knowing the sample means, sample standard deviations, and sample sizes for both groups. To apply the decision rule, Monnin must calculate the t-value from the sample data and compare it to the critical t-value.

As the question does not provide all the necessary data to perform the actual test (such as means, standard deviations, and the number of observations), I cannot calculate the t-value. However, if the calculated t-value is greater than the critical t-value at the 0.10 significance level for a one-tailed test, the null hypothesis that there is no difference between the mean expenses of the sales and audit staff would be rejected, indicating that the mean expenses for the sales staff are greater.