M4a: Hypothesis Testing Scenario Assignment
Scenario Script
Caption: As you prepared your memo about the new “Princess Select” line, you discovered that the sample
size that you were provided was insufficiently small. Using a larger sample of 200 customers, you conducted
this research and the data is now ready for your analysis.
The following results were found:
1. Sample mean for price was $46.60 with a standard deviation of $5.90
2. Proportion who would purchase the new product was 78%
Mieke: You have the new data already? Great. So, like I said previously, at least 85% of the customers must
express some desire for the product. The customers who are interested in the product must be willing to pay at
least $47.50.
Scenario Assignment
Using this information, complete the following:
1. Conduct hypothesis tests for price and proportion.
2. Based on this updated data and Mieke’s parameters, should the new line be marketed? Explain your answer.