A Student Is Trying to Decide If It Is Cheaper

question 39

Multiple Choice

A student is trying to decide if it is cheaper to order blank CDs over the Internet or to buy them at local electronics stores.Listed below are the prices (in dollars) quoted for boxes of 200 blank CDs from various manufacturers. $$\begin{array} { c c } \ \text { Internet } & \text { Local Electronics Stores } \\26.00& 33.98 \\27.99& 37.75 \\31.50 & 38.99 \\32.75 & 35.79 \\27.00 & 33.99 \\27.98 & 34.79 \\24.75 & 29.98 \\28.15& 33.00 \\29.99 & 32.00\\29.99\end{array}$$
What is the test statistic T?

• A)111
• B)130
• C)60
• D)120

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Definitions:

Random Sequence

A series of numbers or letters in which each element has an equal probability of occurring and the occurrence of one element does not affect the probability of the others.

Coin Tosses

A simple randomness process used for deciding between two equally likely outcomes by flipping a coin.

Hindsight Bias

The inclination to think, upon discovering a result, that it was predictable in hindsight, referred to as the "knew-it-all-along" effect.

Psychological Theories

Frameworks for understanding mental processes and behavior through systematized concepts and propositions.