In Testing the Hypotheses

question 159

Essay

In testing the hypotheses
H₀: p₁ - p₂ = 0.10 vs.
H_a: .
Use the following statistics, where x₁ and x₂ represent the number of Dial Soap sales in the two samples, respectively.
n₁ = 150, x₁ = 72
n₂ = 175, x₂ = 70
What conclusion can we draw at the 5% significance level?
Test statistic = ______________
Critical Value(s) = ______________
Conclusion: ______________
What is the p-value of the test?
p-value = ______________
Explain how to use the p-value to test the hypotheses.
____________________________
Estimate with 95% confidence the difference between the two population proportions.
______________
Interpret and explain how to use the confidence interval to test the hypotheses.
__________________________________________

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Definitions:

Transfer Price

The price at which goods and services are traded between departments or subsidiaries within the same organization.

Variable Cost

Costs that vary directly with the level of production or sales volume, such as materials and labor, in contrast to fixed costs which remain constant regardless of production level.

Transfer Price

The price charged for goods or services transferred between departments or subsidiaries within the same company.

Opportunity Cost

The price paid for not choosing the subsequent optimal alternative during decision-making.