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[Solved] The manufacturer of an MP3 player wanted to know whether a 10 percent reduction in price is enough to increase the sales of the product. To investigate,

Question: The manufacturer of an MP3 player wanted to know whether a 10 percent reduction in price is enough to increase the sales of the product. To investigate, the owner randomly selected eight outlets and sold the MP3 player at the reduced price. At seven randomly selected outlets, the MP3 player was sold at the regular price. Reported below is the number of units sold last month at the sampled outlets.

Regular Price Reduced Price
138 128
121 134
88 152
115 135
141 114
125 106
96 112
120
  1. At the .01 level of significance, can the manufacturer conclude that the price reduction resulted in an increase in sales? Assume that the populations are approximately normally distributed.
Complete the following:
  1. State H 0 .
2. State H 1 .
3. State the value of α.
4. State the value of the test statistic.
5. State the p-value.
6. State the decision in terms of H 0 and why.
7. State the decision in terms of the problem.

b. Construct separate 99% confidence interval estimates of the mean number of sales at regular price and at the reduced price.

c. Do the results of part (b) agree with the results of part (a)? Explain why or why not.

Price: $2.99
Solution: The downloadable solution consists of 5 pages
Deliverable: Word Document


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