6. To compare prices of products at two different stores, the following data was
ID: 3366337 • Letter: 6
Question
6. To compare prices of products at two different stores, the following data was collected by randomly selecting 10 matching items from each store. The results follow Item Identifier ABC D EF GH IJ Store l1S 125 78 $46 . Si 19 $99 $ 132 $83 $1101 $140 , $69 Store 2 $110 $89 $45 S129 $99 $127 $75 $109 $111 $76 We want to know if the two stores have the same prices for products. For this kind of problem, there are three different types of inference tests that can be used to ans the question. State the three different tests and comment on the advantag perform the tests. es of each method. Do notExplanation / Answer
Solution:
1, Paired t-test: The Paired t-Test starts with two hypotheses, the null and the alternate. In the case of the paired t-Test, they are based on the difference in each pair.
H0(Null): Mean Difference (Prices of products of store-1 - Prices of products of store-2) = 0
H1(Alt): Mean Difference (Prices of products of store-1 - Prices of products of store-2) not equal to 0
2. Two sample t-test for equal means: It is used to determine if two population have equal means
3. Single-Sided Test: This test is to check whether one store price is more than that of other store price
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