The Following Data Represent the Number of Flash Drives Sold

question 108

Essay

The following data represent the number of flash drives sold per day at a local computer shop and their prices. $$\begin{array}{l}\text { Price } ( x ) \quad \text { Units Sold } ( y )\\\begin{array} { l l } \$ 3.4 & 3 \\3.6 & 4 \\3.2 & 6 \\3.5 & 5 \\3.0 & 9 \\3.8 & 2 \\4.0 & 1\end{array}\end{array}$$ ​
​a.Perform an F test and determine if the price and the number of flash drives sold are related. Let α = .01.
b.Perform a t test and determine if the price and the number of flash drives sold are related. Let α = .01.

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Definitions:

Predatory Pricing

A strategy where a company sets very low prices with the intent to drive competitors out of the market, which can sometimes lead to monopolistic practices.

Marketing Director

A senior executive responsible for directing and overseeing marketing strategies and campaigns to boost brand awareness and sales.

Smaller Competitors

Companies with a smaller market share or resources compared to the leading firms in an industry.

Value-Based Pricing

Value-based pricing is a strategy where the price of a product or service is primarily determined by the perceived or estimated value to the customer rather than traditional cost-plus metrics.