Traditional method of hypothesis testing

Vold

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Apr 21, 2013
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A sample of ten local mixed martial arts studios shows their profits (in thousands of dollars) 5 years ago and their profits today. At ?=.05, can it be concluded that the average in profits for these studios is greater today than it was 5 years ago? Assume the variables are normally distributed. Use the traditional method of hypothesis testing. Hint: Make sure you think hard about your alternative hypothesis.

Studio ---- Profits 5 years ago ------ Profit Today
Dragon ---- 120 ------------------------------- 150
Monkey ---- 100 ------------------------------ 95
Phoenix ---- 200 ----------------------------- 260
Centaur ---- 80 ------------------------------- 100
Liger -------- 65 -------------------------------- 85

I've stated my hypotheses as H0=113 and H1 > 113. I found the critical value as 1.65. But now I'm stuck on how to compute the test value.
 
1) 10? Looks like five (5) to me.
2) The "Normal Distribution" assumption will have to influence something. Is there a variance around here, somewhere?
 
Yeah, that must have been a typo. No variance given though. Do I use a paired T distribution?
 
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