Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A manufacturer produces both a deluxe and a standard model of an automatic sander designed for home use. Selling prices obtained from a sample of

A manufacturer produces both a deluxe and a standard model of an automatic sander designed for home use. Selling prices obtained from a sample of retail outlets follow.

Retail Outlet Model Price ($) Deluxe Standard 1 39 27 2 38 28 3 44 36 4 38 30 5 40 30 6 39 34 7 35 29 (a)The manufacturer's suggested retail prices for the two models show a $10 price differential. Use a 0.05 level of significance and test that the mean difference between the prices of the two models is $10.State the null and alternative hypotheses. (Use d = mean price for the deluxe model mean price for the standard model.)

H0: d = 10

Ha: d 10

H0: d > 10

Ha: d 10

H0: d 10

Ha: d > 10

H0: d 10

Ha: d = 10

H0: d = 10

Ha: d 10

Calculate the value of the test statistic. (Round your answer to three decimal places.)

Calculate the p-value. (Round your answer to four decimal places.)p-value =

State your conclusion.

Do not Reject H0. We can reject the hypothesis that the mean difference between the prices of the two models is $10.

Reject H0. There is insufficient evidence to conclude that the mean difference between the prices of the two models is $10.

Reject H0. There is sufficient evidence to conclude that the mean difference between the prices of the two models is $10.

Do not reject H0. We cannot reject the hypothesis that the mean difference between the prices of the two models is $10.

(b)What is the 95% confidence interval for the difference between the mean prices of the two models (in dollars)? (Round your answers to nearest cent. Use the mean price for the deluxe model the mean price for the standard model.)$_______ to $___________

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

Intermediate Algebra Functions & Authentic Applications (Subscription)

Authors: Jay Lehmann

6th Edition

0134779487, 9780134779485

More Books

Students also viewed these Mathematics questions

Question

3. Im trying to point out what we need to do to make this happen

Answered: 1 week ago

Question

1. I try to create an image of the message

Answered: 1 week ago