Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

35. FILE The manufacturer of an MP3 player wanted to know whether a 10% reduction in price is enough to increase the sales of

image text in transcribed

35. FILE The manufacturer of an MP3 player wanted to know whether a 10% reduction in price is enough to increase the sales of its product. To investigate, the owner randomly selected eight outlets and sold the MP3 player at the reduced price. At seven randomly selected outlets, the MP3 player was sold at the regular price. Reported in the table is the number of units sold last month at the regular and reduced prices at the randomly selected outlets. At the .01 significance level, can the manufacturer conclude that the price reduction resulted in an increase in sales? Regular price 138 121 88 115 141 125 96 Reduced price 128 134 152 135 114 106 112 120 a. What are the null and alternate hypotheses? b. Compute the test statistic. c. Compute the p-value. d. What is your decision regarding the null hypothesis? e. Interpret the result.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Elementary Linear Algebra with Applications

Authors: Howard Anton, Chris Rorres

9th edition

471669598, 978-0471669593

More Books

Students also viewed these Mathematics questions