The Manufacturer Of An Mp3 Player Wanted To Know Whether A 10 Reduction In Price Is Enough To Increase The Sales Of Its 1 (28.22 KiB) Viewed 41 times
The Manufacturer Of An Mp3 Player Wanted To Know Whether A 10 Reduction In Price Is Enough To Increase The Sales Of Its 2 (28.57 KiB) Viewed 41 times
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 below is the number of units sold last month at the regular and reduced prices at the randomly selected outlets. Assume the population variances are equal. Hint. The reduced price is considered population 1 Regular price 139 130 96 123 149 13397 Reduced price 139 130 96 123 149 133 97 133 Click here for the Excel Data File At the 0.01 significance level, can the manufacturer conclude that the price reduction resulted in an increase in sales? a. What are the null and alternate hypotheses? OHO: HReduced S HRegular H: Hreduced > HRegular OHO: HReduced Regulari H. Hreduced Regular Ho: Reduced SMRegulari H HReduced Regular
b. Compute the test statistic. (Round your answers to 2 decimal places.) Test statistic c. Compute the p-value. (Round your answer to 4 decimal places.) p-value d. What is your decision regarding the null hypothesis? Fail to reject Ho O Reject Ho
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