The manufacturer's suggested retail prices for the two models show a $10 price differential. Use a .05 level of significance and test that the mean difference between the prices of the two models is $10.

Develop the null and alternative hypotheses.
H 0 =
H a =

Calculate the value of the test statistic. If required enter negative values as negative numbers. (to 2 decimals).


The p-value is

Can you conclude that the price differential is not equal to $10?

What is the 95% confidence interval for the difference between the mean prices of the two models (to 2 decimals)?
 

Transcribed Image Text:

A manufacturer produces both a deluxe and a standard model of an automatic sander designed for home use. Selling prices obtained from a sample of retail outlets follow. Model Price ($) Model Price ($) Retail Outlet Deluxe Standard Retail Outlet Deluxe Standard 39 27 5 40 30 2 39 28 6 39 34 3 45 35 7 35 29 4 38 30 A manufacturer produces both a deluxe and a standard model of an automatic sander designed for home use. Selling prices obtained from a sample of retail outlets follow. Model Price ($) Model Price ($) Retail Outlet Deluxe Standard Retail Outlet Deluxe Standard 39 27 5 40 30 2 39 28 6 39 34 3 45 35 7 35 29 4 38 30

Answer rating: 100% (QA)

null Hypothesisug is equal to 10 alternate Hypothe... View the full answer