Activity 2.

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1 Activity 2 Student Name University Affiliation Professor Date of Submission

2 Activity I Question 1 Taking that the mean soda price is 2.58 for the whole competitors, the assumption for analyzing to test the belief is the null hypothesis. Question 2 For the computation of the t-statistic, the population means (x bar) should be subtracted from the sample mean (x bar) (Todorova, 2019). After that, we will divide standard error, which is s √ n Test statistic = estimate – hypothesized value/ standard error (2.69 – 2.58)/(0.439/ √ 35) = 1.547 = 1.5470.020 = 1.482 Therefore, the test statistic = 1.482 Question 3 Since the population mean = 2.58, there is a probability that the p-value with either be higher than 1.48 or -1.48; through excel, the t-statistic’s p-value is 0.131 Question 4 By using the 90% confidence interval to test if the average soda price of the competitors is $2.58 by applying the t-stat, we will accept the null hypothesis. Question 5 Using the 90% confidence interval to test if the average soda price of the competitors is $2.58 utilizing the p-value, the significance level will be 0.05. The test statistic will be 1.48 with a p- value of 0.131; if the outcome is not significant, we will accept the null hypothesis that the assumption of the soda price mean being $2.58 is true.

3 Question 6 Both answers for questions 5 and 6 are similar, and therefore it is impossible that they would have diverse conclusions. Activity II Question 1 99% confidence interval is (8.898,9.813); therefore, we will obtain the standard deviation and divide it by the identified observations square root (Todorova, 2019). We will then take the mean deviation. Question 2 The t-statistic of the corresponding test is calculated as Test statistic = [(sample mean – hypothesized mean)/ standard error] The sample mean is 6.96, hypothesized mean is 11.5, and the standard error = sample standard deviation/square root of observations which is 11.31/ √ 50 = 1.6 Therefore, t-stat = (6.96 – 11.5) / 1.6 = -2.84 Question 3 100% - 95% = 5% = 5/100 = 0.05 Using the p-value of 0.05, we will state that the null hypothesis is invalid. Question 4 We can state that the average profit is less than $11.5, so we do not accept the null hypothesis.

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4 References Todorova, S. (2019). Statistics for data analysis using Microsoft Excel. Izvestia Journal of the Union of Scientists-Varna. Economic Sciences Series , 8 (2), 68-74.

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