Blue Box is testing a new “half price on Tuesday” policy on DVD rentals at a sample of 10 locations.   Location New Price Old Price 1   15     11   2   11     7   3   13     10   4   13     14   5   10     9   6   12     15   7   12     13   8   11     7   9   13     12   10   12     9      Click here for the Excel Data File   (a-1) Choose the right option for H0:μd ≤ 0; H1:μd> 0. Use α = .05.   Reject if tcalc < 1.833 Reject if tcalc > 1.833   (a-2) Calculate the value of tcalc. (Round your answer to 2 decimal places.)   tcalc             (b-1) Is the decision close? (Round your answer to 4 decimal places.)   The decision is   (Click to select)   not close   close    The p-value is  .

Linear Algebra: A Modern Introduction
4th Edition
ISBN:9781285463247
Author:David Poole
Publisher:David Poole
Chapter7: Distance And Approximation
Section7.3: Least Squares Approximation
Problem 31EQ
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Blue Box is testing a new “half price on Tuesday” policy on DVD rentals at a sample of 10 locations.
 

Location New Price Old Price
1   15     11  
2   11     7  
3   13     10  
4   13     14  
5   10     9  
6   12     15  
7   12     13  
8   11     7  
9   13     12  
10   12     9  
 


 Click here for the Excel Data File
 
(a-1) Choose the right option for H0:μd ≤ 0; H1:μd> 0. Use α = .05.
 

  • Reject if tcalc < 1.833
  • Reject if tcalc > 1.833


 
(a-2) Calculate the value of tcalc(Round your answer to 2 decimal places.)
 
tcalc          
 
(b-1) Is the decision close? (Round your answer to 4 decimal places.)
 
The decision is   (Click to select)   not close   close 
 
The p-value is  .
 
(b-2) The new price is better than the old.
 

  • False
  • True


 
(b-3) The difference is significant.
 

  • True
  • False


 
(c) Are you convinced?
 

  • No
  • Yes

 

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