For this assessment you will write an analysis of ways to ga

For this assessment, you will write an analysis of ways to gather and test statistical evidence to support a hypothetical assertion.

You are the manager of the Blander Mountain store in Frogtown, Illinois. Recently, a customer mentioned that he believed your prices for ammunition were lower than the prices of Blander\'s primary competitor in the hunting equipment market. You would like to be able to include that statement in a forthcoming print advertisement, so you need statistical evidence to support this assertion.

Identify the null and alternative hypotheses needed to test the contention.

Identify the most appropriate sample selection technique to gather data for testing the hypothesis.

What statistical test should you use to test this hypothesis with the data you will collect?

Solution

The null hypothesis is the claim that we need to prove.
Thus,
Ho : mean (Blader mountain) < mean (Competitors)

Ha : mean (Blader mountain) >= mean (Competitors)

For arriving at the mean prices of Blander mountain, prices from different stores can be taken as samples. (Simple random sampling)

For multiple competitors, stratified sampling or clustered sampling may be taken up, i.e choosing a few prices from each of the competitors.

Since, the means are to be compared, we can take one -tailed t-test to test the hypothesis.

Hope this helps.