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)
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