One of the music industrys most pressing questions is: Can paid download stores contend nose-to-nose with free

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One of the music industry’s most pressing questions is: Can paid download stores contend nose-to-nose with free peer-to-peer download services? Data gathered over the last 12 months show Apple’s iTunes was used by an average of 1.65 million households with a sample standard deviation of 0.56 million family units. Over the same 12 months WinMX (a no-cost P2P download service) was used by an average of 2.2 million families with a sample standard deviation of 0.30 million. Assume the population standard deviations are not the same. Using a significance level of .05, test the hypothesis of no difference in the mean number of households picking either variety of service to download songs.


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