A manufacturer produces both a deluxe and a standard model of an

 

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.

 

Retail Outlet

Deluxe Model Price ($)

Standard Model Price ($)

1

40

27

2

39

28

3

43

35

4

38

31

5

40

30

6

39

32

7

36

29

 

 

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.

Calculate the value of the test statistic. If required enter negative values as negative numbers. (to 2 decimals).

10.00

The p-value is 

Can you conclude that the price differential is not equal to $10?

What is the 95% confidence interval for the difference between the mean prices of the two models (to 2 decimals)?
(
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