A marketing research firm wishes to compare the prices charged by two supermarke

Question

A marketing research firm wishes to compare the prices charged by two supermarket chains-Miller's and Albert's. The research firm, using a standardized one-week shopping plan (grocery list), makes identical purchases at 10 of each chain's stores. The stores for each chain are randomly selected, and all purchases are made during a single week. It is found that the mean and the standard deviation of the shopping expenses at the 10 Miller's stores are = $ 113.84 and s_1 = 1.02 it is also found that the mean and the standard deviation of the shopping expenses at the 10 Albert's stores are = $105.54 and S2= 2.08. Calculate the value of the test statistic. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Test statistic Calculate the critical value. (Round your answer to 2 decimal places.) Critical value At the 0.10 significance level, what it the conclusion? Reject Fail to reject

Explanation / Answer

Market research firms can help entrepreneurs understand their competitors and value of their products/services. It is a combination of primary and secondary researches.

Because the stores in each sample are different stores in different chains, it is reasonable to assume that the samples are independent, and we assume that weekly expenses at each chain are normally distributed. a Letting µM be the mean weekly expense for the shopping plan at Miller's, and letting µA be the mean weekly expense for the shopping plan at Albert's,

output of the test of H0 : µM µA = 0 (that is, there is no difference between µM and µA ) versus Ha : µM µA 0 (that is, µM and µA differ). Note that MINITAB has employed the equal variances procedure. Use the sample data to show that _ = 121.92, sM = 1.40, _ = 114.81, sA = 1.84, and t = 9.73.

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