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The manufacturer of an MP3 player wanted to know whether a 10% reduction in price is...

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 eight outlets and sold the MP3 player at the reduced price. At 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 regular and reduced prices at the randomly selected outlets.

Regular price 133 123 89 117 117 127 94
Reduced price 125 137 151 137 113 122 134 132
Regular Reduced
133 125
123 137
89 151
117 137
117 113
127 122
94 134
132

At the 0.05 significance level, can the manufacturer conclude that the price reduction resulted in an increase in sales? Hint: For the calculations, assume reduced price as the first sample.

  1. Compute the pooled estimate of the variance. (Round your answer to 3 decimal places.)

  1. Compute the test statistic. (Round your answer to 2 decimal places.)

  1. State your decision about the null hypothesis.

  • Reject H0

  • Fail to reject H0

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