Answer to Question #160734 in Statistics and Probability for unknown

Question

Table 3 shows the selling price of a specific brand of sanitizer at five stores before and after the COVID-19 pandemic. At 0.1 level of confidence level, can we make a conclusion that on average, the price has not changed? Make your conclusion using the p-value approach, with the aid of Mic. Office EXCEL. Table 3

Before RM13.50 RM11.00 RM12.50 RM11.20 RM17.70

After RM13.50 RM12.00 RM12.50 RM11.20 RM18.80

(10 marks)

Answer 1

$H_0: μ_1 = μ_2 \\ H_1: μ_1 ≠ μ_2$

The p-value for two-tailed test is 0.17> 0.01.

Thus H₀ is rejected.

So, we have sufficient evidence to conclude at 0.01 level that that on average the price has changed.