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The price of a set of ear buds at a national chain store is $180. A new statistics student decided to test the hypothesis that
The price of a set of ear buds at a national chain store is $180. A new statistics student decided to test the hypothesis | |||||||||
that you can buy that same set of ear buds online for less than you can buy it at the chain store. He decided | |||||||||
to test it at a level of significance of .05 since that level is the most common level. He looked up the price | |||||||||
of that ear buds on 10 different websites. Here are the prices that he found: | |||||||||
$ 165.00 | $ 178.00 | $ 179.00 | $ 183.00 | $ 159.00 | $ 181.00 | $ 184.00 | $ 176.00 | $ 163.00 | $ 176.00 |
What is the null hypothesis? (Remember that the null hypothesis contains an equal sign.) | ||||||
What is the alternative hypothesis? | ||||||
What is the level of significance? | ||||||
Which test do you perform? Student's t test or z test? Why? | ||||||
How many degrees of freedom? | ||||||
Which tail(s) are you testing and why? | ||||||
What is the absolute value of the critical value ? |
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