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A study indicated that when shopping online for luxury goods, men spend a mean of $2,401, whereas women spend a mean of $1,527. The study was based on a sample of 600 men and 700 women and the standard deviation of the amount spent was $1,200 for men and $1,000 for women.
a) State the null and alternate hypotheses if you want to determine whether the mean amount spent is higher for men than for women,
b) In the context of this study, what is the meaning of Type 1 error?
c) In the context of this study, what is the meaning of Type II error?
d) At the .01 significance level, is there evidence that the mean amount spent is higher for men than for women?
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