Question:
Hypothesis Testing Scenario
Caption: As you prepared your memo about the new "Tire Kit" line, you discovered that the sample size that you were provided was insufficiently small. Using a larger sample of 200 customers, you conducted this research and the data is now ready for your analysis.
The following results were found:
1. Sample mean for price was $46.60 with a standard deviation of $5.90
2. Proportion who would purchase the new product was 78%
Larry: You have the new data already? Great. So, like I said previously, at least 85% of the customers must express some desire for the product. The customers who are interested in the product must be willing to pay at least $47.50.
Questions:
Using this information, complete the following:
1. Conduct hypothesis tests for price and proportion.
2. Based on this updated data and Larry's parameters, should the new line be marketed? Explain your answer.