Monday, May 9, 2011

hypothesis testing

A furniture company believes their products average price is around $325. They take a sample of last weeks sales (n=49) and find an average of $315.67 with a standard error of 14.37. Use hypothesis testing to determine if the products average price could be around $325 for a 95% confidence level.

1 comment:

  1. reject the hypothesis. the average does not fall in the critical region.