Question

1. A professor in the School of Business wants to investigate the prices of new textbooks in the campus bookstore and the Internet. The professor randomly chooses the required texts for 12 business school courses and compares the prices in the two stores. The results are as follows:

Book	Campus Store	Internet Price
1	$55.00	$50.95
2	47.50	45.75
3	50.50	50.95
4	38.95	38.50
5	58.70	56.25
6	49.90	45.95
7	39.95	40.25
8	41.50	39.95
9	42.25	43.00
10	44.95	42.25
11	45.95	44.00
12	56.95	55.60

1. At the .01 level of significance, is there any evidence of a difference in the average price of business textbooks between the campus store and the Internet? Use Excel and the classical method.                                                                

1. Hyps: H₀:

H₁:

2. Test(s):

3. Decision rule:

4. Analysis:

5. Conclusions: (1)

(2)

(3)

(4)

2. What assumptions are necessary to perform this test?                              

3. Find the p-value in (a)? Using the p-value, Is there any evidence of a difference in the average price of business textbooks between the campus store and the Internet? Use Excel and the p-value method and alpha = 1%.   

1. Hyps: H₀:

H₁:

2. Test(s):

3. Analysis:

p-value:

4. Conclusions: (1)

(2)

(3)

(4)

Answer 1