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.

Model Price ($) Model Price ($)

Retail Outlet Deluxe Standard Retail Outlet Deluxe Standard

1 39 27 5 40 30

2 39 28    6 39 34

3 45 35      7 35 29

4 38 30

The manufacturer's suggested retail prices for the two models show a $10 price differential. Use a .05 level of significance and test that the mean difference between the prices of the two models is $10.

A. Calculate the value of the test statistic. If required enter negative values as negative numbers. (to 2 decimals).

Please specify the answer for A.

Answer 1

vvalue of the test statistic is t=-1.16