In: Statistics and Probability
A university bookstore realizes that they are losing business, because more students are choosing to buy there textbooks online. The bookstore wants to run an advertising campaign that claims that new textbooks purchased at the bookstore are cheaper than purchasing a new textbook online and paying for the book and shipping.
Before running this advertising campaign, they want to test this claim to confirm that the bookstore prices really are lower. They randomly sample 10 new textbooks and look up the price to order that same book online and have it shipped to them. To results were as follows:
Textbook |
1 |
2 |
3 |
4 |
5 |
6 |
7 |
8 |
9 |
10 |
Bookstore Price |
108 |
114 |
115 |
90 |
118 |
130 |
119 |
115 |
75 |
114 |
Online Price |
124 |
120 |
105 |
95 |
115 |
130 |
117 |
125 |
90 |
115 |
Differences =L1-L2 |
-16 |
-6 |
10 |
-5 |
3 |
0 |
2 |
-10 |
-15 |
-1 |
Use α = 0.10 as the significance level for this test.