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A manufacturer of designer jeans has pitched her advertising to develop an expensive and classy image. The suggested retail price is $90. However she is concerned that retailers are undermining her image by offering jeans at discount prices. To better understand what is happening, she randomly samples 40 retailers who sell her product and determines the price. The mean and standard deviation from these retailers were found to be $87.30 and $9.00 respectively. 1. Use the tables in the textbook to determine the critical value for the test statistic, if alpha = 5%. State your answer correct to three decimal places. 2. Does this test provide sufficient evidence to conclude that the price is being undermined? (yes/no) A manufacturer of designer jeans has pitched her advertising to develop an expensive and classy image. The suggested retail price is $90. However she is concerned that retailers are undermining her image by offering jeans at discount prices. To better understand what is happening, she randomly samples 40 retailers who sell her product and determines the price. The mean and standard deviation from these retailers were found to be $87.30 and $9.00 respectively. 1. Use the tables in the textbook to determine the critical value for the test statistic, if alpha = 5%. State your answer correct to three decimal places. 2. Does this test provide sufficient evidence to conclude that the price is being undermined? (yes/no)
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Hence 1 Critical value for a left tailed test with 005 significa... View the full answer
Related Book For
Quantitative Analysis for Management
ISBN: 978-0132149112
11th Edition
Authors: Barry render, Ralph m. stair, Michael e. Hanna
Posted Date:
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