Question
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
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