At a 0.02 significance level, does Atlas have reason to believe that the average retail price to the consumer has decreased?
Inverse Normal Distribution
The method used for finding the corresponding z-critical value in a normal distribution using the known probability is said to be an inverse normal distribution. The inverse normal distribution is a continuous probability distribution with a family of two parameters.
Mean, Median, Mode
It is a descriptive summary of a data set. It can be defined by using some of the measures. The central tendencies do not provide information regarding individual data from the dataset. However, they give a summary of the data set. The central tendency or measure of central tendency is a central or typical value for a probability distribution.
Z-Scores
A z-score is a unit of measurement used in statistics to describe the position of a raw score in terms of its distance from the mean, measured with reference to standard deviation from the mean. Z-scores are useful in statistics because they allow comparison between two scores that belong to different normal distributions.
Atlas Sporting Goods has implemented a special trade promotion for its propane stove and feels that the promotion should result in a price decrease for the consumer. Atlas knows that before the promotion began, the average retail price (µ) of the stove was $44.95, and the standard deviation (σ) was $5.75. Atlas samples 25 of its retailers after the promotion begins and finds the mean price for the stoves (x̄) is now $42.95. At a 0.02 significance level, does Atlas have reason to believe that the average retail price to the consumer has decreased?
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