A manufacturer produces both a deluxe and a standard model of an
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A manufacturer produces both a deluxe and a standard model of an automatic sander designed for home use. Selling prices obtained from a sample of retail outlets follow.
|
Retail Outlet |
Deluxe Model Price ($) |
Standard Model Price ($) |
|
1 |
40 |
27 |
|
2 |
39 |
28 |
|
3 |
43 |
35 |
|
4 |
38 |
31 |
|
5 |
40 |
30 |
|
6 |
39 |
32 |
|
7 |
36 |
29 |
The manufacturer’s suggested retail prices for the two models show a $10 price differential. Use a .05 level of significance and test that the mean difference between the prices of the two models is $10.
Develop the null and alternative hypotheses.
Calculate the value of the test statistic. If required enter negative values as negative numbers. (to 2 decimals).
10.00
The p-value is
Can you conclude that the price differential is not equal to $10?
What is the 95% confidence interval for the difference between the mean prices of the two models (to 2 decimals)?
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