A business wants to lower its price level to increase sales of its goods. However, for the price reduction to be beneficial, the increase in sales after the price decrease must be greater than 10%....

A business wants to lower its price level to increase sales of its goods. However, for the price reduction to be beneficial, the increase in sales after the price decrease must be greater than 10%. After the business lowers its prices, it monitors its sales for 60 days and determines that the rate of increase in sales is 13% on average. Should the business maintain the low price level practice? What is the hypothesis and decision for α = 0.05? H0 : P ≤ 0.13 H1 : P > 0.13, Decision: Ho cannot be rejected. H0 : P = 0.10 H1 : P < 0.10,="" decision:="" ho="" is="" rejected.="" h0="" :="" p="0.13" h1="" :="" p="" ≠="" 0.13,="" decision:="" ho="" is="" rejected.="" h0="" :="" p="0.10" h1="" :="" p="" ≠="" 0.10,="" decision:="" ho="" cannot="" be="" rejected.="" h0="" :="" p="" ≤="" 0.10="" h1="" :="" p=""> 0.10, Decision: Ho cannot be rejected.