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 sold the MP3 player at the reduced price. At seven randomly selected outlets, the MP3 player was sold at the regular price. Reported below is the number of units sold last month at the regular and reduced prices at the randomly selected outlets. Regular price 138 124 89 112 116 123 98 Reduced price 124 134 154 135 118 126 133 132 Click here for the Excel Data File At the 0.025 significance level, can the manufacturer conclude that the price reduction resulted in an increase in sales? Hint: For the calculations, assume reduced price as the first sample. Compute the pooled estimate of the variance. (Round your answer to 3 decimal places.) Compute the test statistic. (Round your answer to 2 decimal places.) State your decision about the null hypothesis. Reject H0 Fail to reject H0 rev: 12_04_2017_QC_CS-10980
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 sold the MP3 player at the reduced price. At seven randomly selected outlets, the MP3 player was sold at the regular price. Reported below is the number of units sold last month at the regular and reduced prices at the randomly selected outlets.
| Regular price | 138 | 124 | 89 | 112 | 116 | 123 | 98 | |
| Reduced price | 124 | 134 | 154 | 135 | 118 | 126 | 133 | 132 |
Click here for the Excel Data File
At the 0.025 significance level, can the manufacturer conclude that the price reduction resulted in an increase in sales? Hint: For the calculations, assume reduced price as the first sample.
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Compute the pooled estimate of the variance. (Round your answer to 3 decimal places.)
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Compute the test statistic. (Round your answer to 2 decimal places.)
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State your decision about the null hypothesis.
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Reject H0
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Fail to reject H0
rev: 12_04_2017_QC_CS-10980
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