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	40	27		5	40	30
2	39	28		6	39	32
3	43	35		7	36	29
4	38	31

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 =  _dequal to 10
   H _a =  _dnot equal to 10
   
   Calculate the value of the test statistic. If required enter negative values as negative numbers. (to 2 decimals).
   
   
   
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.
   ( ,  )

Answer 1