Math Problem Statement

Students at a major university believe they can save money buying textbooks online rather than at the local bookstores. In order to test this theory, they randomly sampled 2525 textbooks on the shelves of the local bookstores. The students then found the "best" available price for the same textbooks via online retailers. The prices for the textbooks are listed in the following table. Based on the data, is it less expensive for the students to purchase textbooks from the online retailers than from local bookstores? Use α=0.01α=0.01. Let prices at local bookstores represent Population 1 and prices at online retailers represent Population 2.

Textbook Prices (Dollars)TextbookBookstoreOnline RetailerTextbookBookstoreOnline Retailer

11

9090

8484

1414

133133

123123

22

8888

6464

1515

122122

103103

33

120120

102102

1616

112112

9999

44

9494

102102

1717

110110

8787

55

137137

120120

1818

132132

131131

66

6767

5353

1919

8787

8787

77

8484

7474

2020

106106

116116

88

8383

9393

2121

5555

6969

99

133133

123123

2222

108108

122122

1010

106106

9494

2323

129129

140140

1111

118118

116116

2424

129129

133133

1212

131131

116116

2525

140140

152152

1313

108108

8787

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Step 2 of 3 :

Compute the value of the test statistic. Round your answer to three decimal places.

Solution

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Math Problem Analysis

Mathematical Concepts

Hypothesis Testing
Paired t-test
Statistical Inference

Formulas

t = (mean of differences) / (standard deviation of differences / sqrt(n))

Theorems

Central Limit Theorem
Student's t-distribution

Suitable Grade Level

University Level (Statistics Course)