Hypothesis testing at significance level

Reference no: EM1313285

The manufacturer of an MP3 player wanted to know whether a 10 percent reduction in price is enough to increase the sales of their product. To investigate, the owner randomly selected eight outlets and sold the MP3 player at the reduced price. At seven randomly selected outlets, the MP3 player was sold at the regular price. Reported below is the number of units sold last month at the sampled outlets.

Regular price	138	121	88	115	141	125	96
Reduced price	128	134	152	$135	114	106	112	120

At the .01 significance level, can the manufacturer conclude that the price reduction resulted in an increase in sales?

Reference no: EM1313285

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