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The paper "Ladies First?" A Field Study of Discrimination in Coffee Shops" (Applied Economics [2008]: 1-19) describes a study in which researchers observed wait times in coffee shops in Boston. Both wait time and gender of the customer were observed. The mean wait time for a sample of 145 male customers was 85.2 seconds. The mean wait time for a sample of 141 female customers was 113.7 seconds. The sample standard deviations (estimated from graphs in the paper) were 50 seconds for the sample of males and 75 seconds for the sample of females. Suppose that these two samples are representative of the populations of wait times for female coffee shop customers and for male coffee shop customers. Is there convincing evidence that the mean wait time differs for males and females? Test the relevant hypotheses using a significance level of 0.05

Short Answer

Expert verified
The solution involves calculating the z-test statistic and comparing it with the critical z-value to see if the null hypothesis can be rejected, thus providing evidence of a difference in mean wait times between males and females.

Step by step solution

01

Formulate the null hypothesis and the alternate hypothesis

The null hypothesis (H0) is that the mean wait time of males(M1) and females(M2) is the same: \( H0: M1 = M2 \).\nThe alternate hypothesis (HA) is that the mean wait times differ: \( HA: M1 \neq M2 \).
02

Calculate the test statistic and the critical z-score

The test statistic z can be calculated using the formula: \[ Z = \frac{{(M1 - M2) - D0}}{{\sqrt{{\frac{{S1^2}}{{n1}} + \frac{{S2^2}}{{n2}}}}}} \] \nWhere M1 and M2 are the sample means, D0 is the hypothesized difference, S1 and S2 are the standard deviations, and n1 and n2 are the number of observations. Here, M1 is 85.2, M2 is 113.7, D0 is 0, S1 = 50, n1 = 145, S2 = 75, n2 =141. The critical z value at a significance level of 0.05 for a two-tailed test is \(\pm 1.96\).
03

Conduct the hypothesis test

If the calculated z-score falls within the critical region (-1.96 to 1.96), reject the null hypothesis. Otherwise, we do not have enough evidence to reject the null hypothesis.
04

Interpret the Result

If the null hypothesis is rejected, there is significant evidence to suggest the mean wait time differs for males and females. If not, there is insufficient evidence to suggest the mean wait times differ.

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Key Concepts

These are the key concepts you need to understand to accurately answer the question.

Null Hypothesis
In hypothesis testing, the null hypothesis (denoted as \( H_0 \)) is a statement that there is no effect or no difference in a population. It's the starting point for statistical testing.

For example, in the coffee shop study, the null hypothesis states that the mean wait time for male customers \( M_1 \) is equal to the mean wait time for female customers \( M_2 \). In other words:
  • \( H_0: M_1 = M_2 \)
By assuming that there's no difference (\( D_0 = 0 \)), the null hypothesis serves as a baseline to compare the data against. It's only rejected when we have enough evidence to support an alternative explanation.
Alternative Hypothesis
The alternative hypothesis (denoted as \( H_A \)) is a statement that contradicts the null hypothesis. It suggests that there is an effect or a difference in the population.

In the context of the coffee shop study, the alternative hypothesis posits that the mean wait times for male and female customers are not the same:
  • \( H_A: M_1 eq M_2 \)
This hypothesis is considered if there's sufficient statistical evidence to reject the null hypothesis. Essentially, it represents the finding that the researcher is trying to prove.
Test Statistic
A test statistic is a standardized value that helps us decide whether to reject the null hypothesis. It measures how far the sample statistic is from the hypothesis in terms of standard errors.

To calculate the test statistic in a situation like this, we use the formula: \[ Z = \frac{{(M_1 - M_2) - D_0}}{{\sqrt{{\frac{{S_1^2}}{{n_1}} + \frac{{S_2^2}}{{n_2}}}}}} \]
  • \( M_1 \) and \( M_2 \) are the sample means of the two groups.
  • \( S_1 \) and \( S_2 \) are the standard deviations.
  • \( n_1 \) and \( n_2 \) are the sample sizes.
  • \( D_0 \) is the hypothesized difference (usually zero).
This results in a z-score, which we then compare to critical values to make a decision about the hypothesis.
Significance Level
The significance level, often denoted by \( \alpha \), is a threshold set to determine when to reject the null hypothesis. It's the probability of incorrectly rejecting the null hypothesis when it's true (a Type I error).

Commonly set at 0.05, it means that there's a 5% chance of making a wrong decision.

In the coffee shop study, the significance level is 0.05, corresponding to critical z values of \( \pm 1.96 \) for a two-tailed test. If the calculated z-score falls outside this range, the null hypothesis is rejected, suggesting a significant difference in waiting times between genders. This balance between risking an error and gaining insights is what makes hypothesis testing powerful.

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Most popular questions from this chapter

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