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The manufacturer of an MP3 player wanted to know whether a 10% reduction in price is...

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Statistics

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 soldthe MP3 player at the reduced price. At seven randomly selectedoutlets, the MP3 player was sold at the regular price. Reportedbelow is the number of units sold last month at the regular andreduced prices at the randomly selected outlets.

Regular price1321278611611712399
Reduced price122138155136115121134127

At the 0.100 significance level, can the manufacturer concludethat the price reduction resulted in an increase in sales?Hint: For the calculations, assume reduced price as thefirst sample.

  1. Compute the pooled estimate of the variance. (Round youranswer to 3 decimal places.)

  2. Compute the test statistic. (Round your answer to 2decimal places.)

  3. State your decision about the null hypothesis.

Answer & Explanation Solved by verified expert
3.8 Ratings (571 Votes)
The sample size is 8 The provided sample data along with thedata required to compute the sample mean and sample variance areshown in the table belowReduced PriceReduced Price21221488413819044155240251361849611513225121146411341795612716129Sum 1048138400The sample mean is computed as followsAlso the sample variance isTherefore the sample standard deviation s isThe sample    See Answer
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