Question

# A manufacturer produces both a deluxe and a standard model of an automatic sander designed for...

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
1. 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.

Develop the null and alternative hypotheses.
H 0 =  d Selectgreater than 10greater than or equal to 10equal to 10less than or equal to 10less than 10not equal to 10Item 1
H a =  d Selectgreater than 10greater than or equal to 10equal to 10less than or equal to 10less than 10not equal to 10Item 2

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

The p-value is Selectless than .01between .10 and .05between .05 and .10between .10 and .20between .20 and .40greater than .40Item 4

Can you conclude that the price differential is not equal to \$10?
SelectYesNoItem 5
2. What is the 95% confidence interval for the difference between the mean prices of the two models (to 2 decimals)? Use a t-table.
( ,  )

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