Answered step by step
Verified Expert Solution
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
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
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started