Question

The owner of a popular independent clothing store has a particular t-shirt design that is her best-seller. Currently, she sells a weekly average of 11 shirts with this design. She wishes to know if slightly lowering the price of this particular design will sell more product per week.

To test this, she records 14 weeks' worth of sales for this design when it is priced slightly lower than normal. With the lowered price, the average number of shirts sold per week was 8.87 shirts with a standard deviation of 5.4 shirts.

Use this information and data to answer the following questions.

a) You wish to test the store owner's claim that more t-shirts are sold after prices are lowered as compared to when they are priced regularly. Complete the missing parts of the hypotheses for a test of this claim.

H0:?

Ha:?

b) Carry out the appropriate test of the above hypotheses. Report the test statistic.

Test statistic =

c) The p-value for the above test is given as 0.081. Complete the probability expression for this p-value.

p((T/Z/X)(>/</=)_____)=?

d)Using ? = 0.06, what conclusion can we reach from this test?

A. Reject the null hypothesis and conclude that lowering prices increases the average number of t-shirts sold
B. Fail to reject the null hypothesis and conclude that lowering prices increases the average number of t-shirts sold
C. Reject the null hypothesis and conclude that lowering prices does not increase the average number of t-shirts sold
D. Fail to reject the null hypothesis and conclude that lowering prices does not increase the average number of t-shirts sold

Answer 1