The average price of a random sample of 12 bottles of diet salad dressing taken from different stores is $1.43. The standard deviation is $0.09. The average price of a random sample of 16 low-calorie frozen desserts is $1.03. The standard deviation is $0.10. At α = 0.01, is there a significant difference in price? Assume the population is normally distributed. Required steps: Step 1: Label all given information. Step 2:State the null and alternative hypothesis and identify the claim. Step 3:Verify that the conditions are met to perform the test. Step 4:Sketch the normal distribution and find the critical regions. Step 5:Compute the test statistic. Step 6:Make a decision Step 7:Summarize the results.
Continuous Probability Distributions
Probability distributions are of two types, which are continuous probability distributions and discrete probability distributions. A continuous probability distribution contains an infinite number of values. For example, if time is infinite: you could count from 0 to a trillion seconds, billion seconds, so on indefinitely. A discrete probability distribution consists of only a countable set of possible values.
Normal Distribution
Suppose we had to design a bathroom weighing scale, how would we decide what should be the range of the weighing machine? Would we take the highest recorded human weight in history and use that as the upper limit for our weighing scale? This may not be a great idea as the sensitivity of the scale would get reduced if the range is too large. At the same time, if we keep the upper limit too low, it may not be usable for a large percentage of the population!
The average price of a random sample of 12 bottles of diet salad dressing taken from different stores is $1.43. The standard deviation is $0.09. The average price of a random sample of 16 low-calorie frozen desserts is $1.03. The standard deviation is $0.10. At α = 0.01, is there a significant difference in price? Assume the population is
Required steps:
Step 1: Label all given information.
Step 2:State the null and alternative hypothesis and identify the claim.
Step 3:Verify that the conditions are met to perform the test.
Step 4:Sketch the normal distribution and find the critical regions.
Step 5:Compute the test statistic.
Step 6:Make a decision
Step 7:Summarize the results.
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