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 8 outlets and sold the MP3 player at the reduced price. At 7 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 (7 outlets) - 138, 127, 129, 114, 114, 126, 98  Reduced (8 outlets) - 122, 135, 151, 133, 113, 129, 134, 133 At the 0.050 significance level, can the manufacturer conclude that the price reduction resulted in an increase in sales? Hint: for the calculations, assume the reduced price as the first sample.  Compute the pooled estimate of the variance (round to 3 decimal places)  Compute the test statistic (round to 2 decimal places)

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Estimation

A new framework of data analysis where the new statistical methods are used for interpreting the results and analyzing the data is known as estimation in statistics.