Question

A survey was conducted by an independent price checking company to check an advertiser's claim that it had lower prices than its competitors. The average weekly total, based on the prices of approximately 95 items, is given for this chain and for its competitor recorded during four consecutive weeks in a particular month.
Week Advertiser (5) Competitor ($) 1 254.28 256.11 2 240.55 255.68 3 235.90 255.20 4 234.15 26115
Is there a significant difference in the average prices for these two different supermarket chains? (Use a = 0,05. Use tri-competitory)
State the null and alternativelypotheses

Answer 1

Answer:

a) critical values ≈ -3.182 and 3.182  shows that there is difference in average prices

b)   H0 : μd = 0

    Ha : μd ≠ 0

Step-by-step explanation:

a) Determine if there is any significant difference in the average prices

using ∝ = 0.05

and  μ( advertiser ) - μ ( competitor ) = μd

test statistic ( t ) =  -3.011

df = 3

hence the critical values ( two tailed test ) =  -3.182 and 3.182. this shows that there is sufficient evidence to show that there is difference in the average prices

b) state the hypothesis

 H0 : μd = 0 ( null )

Alternate hypothesis : Ha : μd ≠ 0