Discussion:
Q: In playing the Lemonade Stand Game, Bob decreased his price per cup by two cents, from $.27 per cup to $.25 per cup. At the .05 level of significance, did net revenue increase? The data for weeks 3 and 4 are presented below; there were 30 observations in each week.
Items to compare:
Price per Xup
Week 3 ; Week 4
.25 ; .27
Stand. Del
3.77 ; 4.52
Ave. Daily Net Revenue
$2.25 ; $2.10
Describe the steps in testing a research hypothesis. What formula should we use to make the calculation? Make the calculation. What is your decision regarding the null hypothesis?