The manager of the Gander Mountain store in Frogtown, IL, believes that his prices for ammunition are lower than the prices of his primary competitor in the hunting equipment market, Cabela's. He would like to be able to provide evidence to support this assertion.
-What are the Gander Mountain manager's null and alternative hypotheses?
-How should he go about taking samples to gather data for testing the hypotheses?
-What statistical test should he use to test his hypothesis, using the data he has collected?
I can help you understand how to set up this hypothesis test for ammunition prices at two different stores.
First off, you're interested in finding out if ammunition prices are lower at Gander Mountain than at Cabela's. So, you're talking about two different populations, but you want to sample prices for ammunition at each store, right?
Since the manager at Gander Mountain believes his ammunition prices are lower, his null hypothesis is:
H_o: mean difference (Cabela's-Gander Mountain)=0
H_a: mean difference (Cabela's-Gander ...
The statistical inference to business decision scenarios are determined.