The manufacturer of a USB Flash Memory is interested in knowing whether a 15 percent reduction in pr
Question: The manufacturer of a USB Flash Memory is interested in knowing whether a 15 percent reduction in price is enough to increase the sales of their product. In order to investigate, the owner randomly selected ten outlets and sold the USB at the reduced price. At twelve randomly selected outlets, the regular price was charged. Recorded below are the numbers of units sold last month at the randomly selected outlets:
|
Number of USB Flash Memories Sold at Discount Price |
Number of USB Flash Memories Sold at Regular Price |
|||||||||
| 140 | 126 | 98 | 152 | 125 | 130 | 188 | 65 | 125 | 87 | |
| 155 | 92 | 158 | 130 | 144 | 110 | 128 | 156 | 85 | 114 | |
| 132 | 92 | |||||||||
a. Do these data provide sufficient evidence to indicate that the price reduction resulted in an increase in sales? Assume these two populations have equal variances. (Use α = 0.05.)
b. Determine the p-value in part (a) and interpret its meaning.
c. Use SPSS and Microsoft Excel to solve this problem and compare the computer printout with your answers to previous parts.
d. How would you test part (a) if you could not assume equal variances?
Deliverables: Word Document
