Question

For this problem you must state the null and alternative hypothesis, the critical value/s and/ or the rejection graph, the test statistic, a sentence describing your results, and the p-value of rejection.

5. The manufacturer of the I-phones wanted to know whether a 10% reduction in a price of I-phone is enough to increase the sales of its product. To investigate, the manufacturer randomly selected 8 outlet stores and sold the I-phones at the reduced rate. The mean number sold at the reduce price was 125 with a standard deviation of 10. When 7 randomly selected outlets sold the I-phone at the regular price, the mean number of I-phones sold was at 117 with a standard deviation of 12. Using 10% significance level, can the manufacturer conclude that the price reduction results is an increase of sales, when the population is normally distributed?

Answer 1

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