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.
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.