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 29 6 39 35 3 46 35 7 35 29 4 38 31 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. a. Calculate the value of the test statistic (to 2 decimals). b. What is the 95% confidence interval for the difference between the mean prices of the two models (to 2 decimals)?

Step-by-step explanation:

The data is incorrect. The correct data is:

Deluxe standard

39 27

39 28

45 35

38 30

40 30

39 34

35 29

Solution:

Deluxe standard difference

39 27 12

39 28 11

45 35 10

38 30 8

40 30 10

39 34 5

35 29 6

a) The mean difference between the selling prices of both models is

xd = (12 + 11 + 10 + 8 + 10 + 5 + 6)/7 = 8.86

Standard deviation = √(summation(x - mean)²/n

n = 7

Summation(x - mean)² = (12 - 8.86)^2 + (11 - 8.86)^2 + (10 - 8.86)^2 + (8 - 8.86)^2 + (10 - 8.86)^2 + (5 - 8.86)^2 + (6 - 8.86)^2 = 40.8572

Standard deviation = √(40.8572/7

sd = 2.42

For the null hypothesis

H0: μd = 10

For the alternative hypothesis

H1: μd ≠ 10

This is a two tailed test.

The distribution is a students t. Therefore, degree of freedom, df = n - 1 = 7 - 1 = 6

2) The formula for determining the test statistic is

t = (xd - μd)/(sd/√n)

t = (8.86 - 10)/(2.42/√7)

t = - 1.25

We would determine the probability value by using the t test calculator.

p = 0.26

Since alpha, 0.05 < than the p value, 0.26, then we would fail to reject the null hypothesis.

b) Confidence interval is expressed as

Mean difference ± margin of error

Mean difference = 8.86

Margin of error = z × s/√n

z is the test score for the 95% confidence level and it is determined from the t distribution table.

df = 7 - 1 = 6

From the table, test score = 2.447

Margin of error = 2.447 × 2.42/√7 = 2.24

Confidence interval is 8.86 ± 2.24

b: |12 – x| ≤ 0.25

step-by-step explanation:      

let x be the possible lengths in inches, of the ribbons jaime cut.

we have been given that jaime is cutting strips of ribbon for a project. he tries to cut each piece to be 12 inches long, but sometimes he cuts it too long or too short by as much as 0.25 inch.  

we can represent this information in an inequality as:

by the definition of absolute value function we will get,

upon combining our inequalities we will get,

therefore, the inequality   describes all the possible lengths (x), in inches, of the ribbons jaime cut.

step-by-step explanation: