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(If you include an assumed shift in means within the Excel tool, then the order of the two groups becomes important. So subtracting the shift first is more straightforward.) We will reject the null hypothesis if the two-sided p-value (Probability [T?t] is less than 0.05. Otherwise fail to reject and conclude that the difference is costs is equal to $10,000...
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Work problem 13.21 using Excel. Note that PV?=C can be rearranged as P=aVb . Taking logs of both sides we get log(P)=log(a) + b log(V) which is in the form of a regression equation for log(P) v. log (v) with an intercept of log(a) and slope of b. So to solve this problem, plot log(P) v. log(V) and then find the slope and intercept by regression, then write the equation in the form of P=aVb and finally in the form of
PV?=C...
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