Question: Although your product, a word game, has a list price of $12.95, each store is free to set the price as it wishes. You have just completed a quick survey, and the marked prices at a random sample of stores that sell the product were as follows:
$12.95, 9.95, 8.95, 12.95, 12.95, 9.95, 9.95, 9.98, 13.00, 9.95
a. Estimate the mean selling price you would have found had you been able to survey all stores selling your product.
b. For a typical store, approximately how different is the actual selling price from the average?
c. Find the 95% confidence interval for the mean selling price for all stores selling your product.
d. Your marketing department believes that games generally sell at a mean discount of 12% from the list price. Identify the hypotheses you would work with to test the population mean selling price against this belief.
e. Test the hypotheses from part d.