Econe Dresses is a small company that manufactures women's dresses for sale to specialty stores. It has 1,200 inventory items, and the historical cost is recorded on a firstin, first-out (FIFO) basis. In the past, approximately 15% of the inventory items were incorrectly priced. However, any misstatements were usually not significant. A sample of 120 items was selected (see the Fifo file), and the historical cost of each item was compared with the audited value. The results indicated that 15 items differed in their historical costs and audited values. These values were as follows:

Construct a 95% confidence interval estimate for the total population difference in the historical cost and audited value.

Transcribed Image Text:

Sample Historical Audited Sample Historical Audited Number Cost (S) Value (S) Number Cost (S) Value (S) 261 240 105 276 110 298 356 211 305 21 140 129 340 341 135 228 210 152 112 216 402 97 220 73 86 95 17 18 28 35 43 51 201 121 315 411 249 216 107 119