Answered: Calculate the value of the test…

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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Question

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	Model Price ($)
Deluxe	Standard
1	39	27
2	38	28
3	45	35
4	38	30
5	40	30
6	39	35
7	35	29

(a)

The manufacturer's suggested retail prices for the two models show a $10 price differential. Use a 0.05 level of significance and test that the mean difference between the prices of the two models is $10.

State the null and alternative hypotheses. (Use ?_d = mean price for the deluxe model − mean price for the standard model.)

H₀:

?_d ≤ 10

H_a:

?_d > 10

H₀:

?_d = 10

H_a:

?_d ≠ 10

H₀:

?_d ≠ 10

H_a:

?_d = 10

H₀:

?_d > 10

H_a:

?_d ≤ 10

H₀:

?_d = 10

H_a:

?_d ≤ 10

Calculate the value of the test statistic. (Round your answer to three decimal places.)

Calculate the p-value. (Round your answer to four decimal places.)

p-value =

State your conclusion.

Reject H₀. There is insufficient evidence to conclude that a $10 price differential exists.Do not Reject H₀. There is sufficient evidence to conclude that a $10 price differential exists. Do not reject H₀. There is insufficient evidence to conclude that a $10 price differential exists.Reject H₀. There is sufficient evidence to conclude that a $10 price differential exists.

(b)

What is the 95% confidence interval for the difference between the mean prices of the two models (in dollars)? (Round your answers to nearest cent. Use the mean price for the deluxe model − the mean price for the standard model.)

$ to $

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