You want to buy a specific computer. A sales representative of the manufacturer claims that retail stores
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You want to buy a specific computer. A sales representative of the manufacturer claims that retail stores sell this computer at an average price of \($1,249\) with a very narrow standard deviation of \($25.\) You find a website that has a price comparison for the same computer at a series of stores as follows: \($1,299;\) \($1,229.99;\) \($1,193.08;\) \($1,279;\) \($1,224.95; $1,229.99;\) \($1,269.95;\) \($1,249.\) Can you argue that pricing has a larger standard deviation than claimed by the manufacturer?
Use the 5% significance level. As a potential buyer, what would be the practical conclusion from your analysis?
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Related Book For
Introductory Business Statistics
ISBN: 202318
1st Edition
Authors: Alexander Holmes , Barbara Illowsky , Susan Dean
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