the price of apples in NY is 20% higher than that in LA
i did this calculation.
i took the hypothesized mean to be 0.20(20%)
i got my T-score as 4.66(subtracted the hypothesized diff from the diference of their means and divided by the standard error)
my p-value is 0.00261*2 = 0.005 (since it's two tailed)
p-value < 0.01 so i can accept this null hypothesis. apples are probably 20% more expensive in NY
please i'll like to know if i'm wrong, and what i could do better.
okay i made so many errors(face palm)
the t-score (i divided by the pooled stdev instead of the standard error)
i also multiplied the p-value by 2 (forgot the site gave me the exact 2 tailed value)
made the wrong decisions even if my values were correct.(more face palms for the road)
wrong equality sign(i blame my coffee for this lol)
new values:
T-score = 6.74
The p-value is < 0.00001
i'm not sure how to interpret this. i think i should reject the null hypothesis(strongly) as th p-value is so close to zero
the tricky thing is they said the price is 20% higher, so i'm not sure if it's my opinion or the status quo
my conclusion is this though: i reject the null hypothesis, the difference in price is not exactly 20%