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A shoe company designed a low-top and high-top version of a particular shoe. One of the shoe-making engineers claims that the low-top version does not last as long as the high-top version before wearing out. To test this claim, she takes a sample of 36 low-top and 64 high-top wearers and asks each the length of time before their shoes wore out. She finds that the low-tops wore out in an average of 140 days, and the high-tops wore out in an average of 150 days. Suppose the population standard deviation for both is 20 days.
A) Specify the competing hypotheses to determine whether high-tops last longer than low-tops for this particular shoe.
B) Calculate the value of the relevant test statistic.
C) Compute the p-value. Does the evidence support the commentator's claim at the 1% significance level?
Digital Currency
A form of currency that is available only in digital or electronic form, not in physical form like paper money or coins.
Electronic Mall
A collection of individual shops under one Internet address; also known as a cybermall or an e-mall.
Individual Shops
Small retail outlets owned or operated by individuals or families, often offering specialized goods or services.
Forward Auctions
Auctions that sellers use as a selling channel to many potential buyers; the highest bidder wins the items.
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