Reference no: EM132852273

As stated above, a marketing theory in the field of consumer behaviour believes that an indirect relation is likely to exist between the price and the number of units purchased for most of the goods and services. In examining this, you were commissioned as a student in the Business Data Analysis course to conduct a mock market research surveying a sample of potential customers in purchasing a hypothetical new product. You randomly selected 16 of your fellow students as the potential customers for the product. You questioned them on the number of units they were likely to purchase for a given price that you set. The data you collected from the mock survey are displayed below. You are tasked in performing the relevant inferential analyses on the relation between the two concerned variables by addressing the below set of questions.

Potential Customer Set Price
Number of units
purchased
in $
Matt 13 21
Kim 15 15
Ken 13.5 21
Tom 15 13
Tim 16.5 14
Anne 13.5 22
Will 14 19
Joe 14.2 17
Jim 16.5 13
Naomi 17 13
Mike 17.2 14
Megan 18 15
Jennie 20 17
Andy 21 14
Bill 19 17
Tony 19.5 16

i) Perform the relevant hypothesis test at the 5% level of significance to see if a negative relation exists between price and number of units purchased. Display working of the six-steps of the hypothesis test. The t test-statistic has been calculated. t calculated = -2.35.