Exercise 1: You are now curious to know if on average Venmo transactions between young adults are smaller than the ones between middle-aged adults. With the help of your uncle, who works for Venmo, you collect anonymous data on 40 random Venmo transactions between young adults and 33 random Venmo transactions between middle-aged adults. Below are the results (in dollars): a) [3 points] Define the parameters of interest and the appropriate null and alternative hypotheses. b) [3 points] State and check if the assumptions needed for conducting the appropriate hypothesis test are satisfied. c) [2 points] Define the appropriate test statistic and calculate its value. d) [3 points] Calculate the p-value. (Use the provided table, not the calculator to find the appropriate critical value. Indicate the correct degrees of freedom). e) [2 points] Write a conclusion. Use significance level 0.03 ..

1. Exercise 1: You are now curious to know if on average Venmo transactions between young adults
are smaller than the ones between middle-aged adults. With the help of your uncle, who works for
Venmo, you collect anonymous data on 40 random Venmo transactions between young adults
and 33 random Venmo transactions between middle-aged adults. Below are the results (in
dollars): a) [3 points] Define the parameters of interest and the appropriate null and alternative
hypotheses. b) [3 points] State and check if the assumptions needed for conducting the
appropriate hypothesis test are satisfied. c) [2 points] Define the appropriate test statistic and
calculate its value. d) [3 points] Calculate the p-value. (Use the provided table, not the calculator to
find the appropriate critical value. Indicate the correct degrees of freedom). e) [2 points] Write a
conclusion. Use significance level 0.03 .