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Hypothesis testing
With the extra profits generated from the new customers, Jacobi is considering expanding his product
To test if his belief is true, Jacobi hires a market researcher (you) to determine how much customers may be willing to pay for this product. You collect data from a sample of 100 motorcycle enthusiasts, all of whom resemble Jacobi’s usual clientele, and determine that the average amount people are willing to pay is $364, with a standard deviation of $35.
Using this information, you conduct a hypothesis test at a 5% level of significance to check whether Jacobi’s belief is justified and to help him decide whether to stock this product.
Conduct in detail all stages of the hypothesis test
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