The manufacturer of an MP3 player wanted to know whether a 10% reduction in price is enough to increase the sales of its product. To investigate, the owner randomly selected seven outlets and sold the MP3 player at the reduced price. At another seven randomly selected outlets, the MP3 player was sold at the regular price. Reported below is the number of units sold last month at the reduced and regular prices at the randomly selected outlets. Number of units sold at Reduced price 138 137 125 131 137 131 130 Number of units sold at Regular price 135 135 120 130 130 135 120 At the .01 significance level, can the manufacturer conclude that average number of units sold at reduced price is more than average number of units sold at regular price? a. What are the null and alternate hypotheses? (Choose 1, 2, or 3.) 1. H0: μReduced ≤ μRegular H1: μReduced > μRegular 2. H0: μReduced > μRegular H1: μReduced ≤ μRegular 3 H0: μReduced ≤ μRegular H1: μReduced < μRegular b. Compute the value of pooled variance (sp2). (Round your answers to 3 decimal places.) c. Compute the test statistic. (Round your answers to 3 decimal places.) d. Write the decision rule: Reject H0 if t is greater than (Round your answers to 3 decimal places.) e. What is your decision regarding the null hypothesis? (Choose 1 or 2.) 1. Reject H0 2. Fail to reject H0 f. Interpret the result. (Choose 1 or 2.) 1. The sample data does provide evidence that the reduced price increased sales. 2. The sample data does not provide evidence that the reduced price increased sales.

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Description: The manufacturer of an MP3 player wanted to know whether a 10% reduction in price is enough to increase the sales of its product. To investigate, the owner randomly selected seven outlets and sold the MP3 player at the reduced price. At another seven

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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The manufacturer of an MP3 player wanted to know whether a 10% reduction in price is enough to increase the sales of its product. To investigate, the owner randomly selected seven outlets and sold the MP3 player at the reduced price. At another seven randomly selected outlets, the MP3 player was sold at the regular price. Reported below is the number of units sold last month at the reduced and regular prices at the randomly selected outlets.

Number of units sold at Reduced price	138	137	125	131	137	131	130
Number of units sold at Regular price	135	135	120	130	130	135	120

At the .01 significance level, can the manufacturer conclude that average number of units sold at reduced price is more than average number of units sold at regular price?

a. What are the null and alternate hypotheses? (Choose 1, 2, or 3.)

1.	H₀: μ_Reduced ≤ μ_RegularH₁: μ_Reduced > μ_Regular
2.	H₀: μ_Reduced > μ_RegularH₁: μ_Reduced ≤ μ_Regular
3	H₀: μ_Reduced ≤ μ_RegularH₁: μ_Reduced < μ_Regular

b. Compute the value of pooled variance (s_p²). (Round your answers to 3 decimal places.)

c. Compute the test statistic. (Round your answers to 3 decimal places.)

d. Write the decision rule: Reject H₀ if t is greater than (Round your answers to 3 decimal places.)

e. What is your decision regarding the null hypothesis? (Choose 1 or 2.)

1.	Reject H₀
2.	Fail to reject H₀

f. Interpret the result. (Choose 1 or 2.)

1.	The sample data does provide evidence that the reduced price increased sales.
2.	The sample data does not provide evidence that the reduced price increased sales.

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