In 2005, the mean retail price of statistics books was $57. This year's retail prices for 10 randomly selected statistics books are shown in the following table. 59 67 57 46 62 52 37 5060 54 Determine if the data provide sufficient evidence to conclude that this year's mean retail price of statistics books has increased from the 2005 mean? Assume that the population standard deviation of prices for this year's agriculture books is $8.4. Perform hypothesis testing using both critical value approach and P-value approach at the 5% significance level also determine the strength of evidence against the null hypothesis.
Inverse Normal Distribution
The method used for finding the corresponding z-critical value in a normal distribution using the known probability is said to be an inverse normal distribution. The inverse normal distribution is a continuous probability distribution with a family of two parameters.
Mean, Median, Mode
It is a descriptive summary of a data set. It can be defined by using some of the measures. The central tendencies do not provide information regarding individual data from the dataset. However, they give a summary of the data set. The central tendency or measure of central tendency is a central or typical value for a probability distribution.
Z-Scores
A z-score is a unit of measurement used in statistics to describe the position of a raw score in terms of its distance from the mean, measured with reference to standard deviation from the mean. Z-scores are useful in statistics because they allow comparison between two scores that belong to different normal distributions.
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