# Question: A marketing manager wishes to compare the mean prices charged

A marketing manager wishes to compare the mean prices charged for two brands of CD players. The manager conducts a random survey of retail outlets and obtains independent random samples of prices. The six retail outlets at which prices for the Onkyo CD player are obtained have a mean price of $ 189 with a standard deviation of $ 12. The twelve retail outlets at which prices for the JVC CD player are obtained have a mean price of $ 145 with a standard deviation of $ 10. Assuming normality and equal variances:

a. Use an appropriate hypothesis test to determine whether the mean prices for the two brands differ. How much evidence is there that the mean prices differ?

b. Use an appropriate 95 percent confidence interval to estimate the difference between the mean prices of the two brands of CD players. Do you think that the difference has practical importance?

c. Use an appropriate hypothesis test to provide evidence supporting the claim that the mean price of the Onkyo CD player is more than $ 30 higher than the mean price for the JVC CD player. Set α equal to .05.

a. Use an appropriate hypothesis test to determine whether the mean prices for the two brands differ. How much evidence is there that the mean prices differ?

b. Use an appropriate 95 percent confidence interval to estimate the difference between the mean prices of the two brands of CD players. Do you think that the difference has practical importance?

c. Use an appropriate hypothesis test to provide evidence supporting the claim that the mean price of the Onkyo CD player is more than $ 30 higher than the mean price for the JVC CD player. Set α equal to .05.

**View Solution:**## Answer to relevant Questions

Calculate a 95 percent confidence interval for μ1 – μ2. Can we be 95 percent confident that μ1 – μ2 is greater than 20? Explain why we can use the equal variances procedure here. Use critical values to test the null hypothesis H0: μ1 – μ2 ≤ 20 versus the alternative hypothesis H0: μ1 – μ2 > 20 by setting α equal to .10, .05, .01, and .001. How much evidence is there that the difference ...A marketing organization wishes to study the effects of four sales methods on weekly sales of a product. The organization employs a randomized block design in which three salesman use each sales method. The results obtained ...A drug company wishes to compare the effects of three different drugs (X, Y, and Z) that are being developed to reduce cholesterol levels. Each drug is administered to six patients at the recommended dosage for six months. ...Consider the sample of 65 payment times given in Table 2.4 (page 42). Use these data to carry out a chi- square goodness- of- fit test to test whether the population of all payment times is normally distributed by doing the ...Post your question