# Question: Suppose a market analyst wants to determine the difference in

Suppose a market analyst wants to determine the difference in the average price of a gallon of whole milk in Seattle and Atlanta. To do so, he takes a telephone survey of 21 randomly selected consumers in Seattle who have purchased a gallon of milk and asks how much they paid for it. The analyst undertakes a similar survey in Atlanta with 18 respondents. Assume the population variance for Seattle is 0.03, the population variance for Atlanta is 0.015, and that the price of milk is normally distributed. Using the resulting sample information that follows,

a. Compute a 99% confidence interval to estimate the difference in the mean price of a gallon of milk between the two cities.

b. Using a 1% level of significance, test to determine if there is a significant difference in the price of a gallon of milk between the twocities.

a. Compute a 99% confidence interval to estimate the difference in the mean price of a gallon of milk between the two cities.

b. Using a 1% level of significance, test to determine if there is a significant difference in the price of a gallon of milk between the twocities.

## Relevant Questions

Employee suggestions can provide useful and insightful ideas for management. Some companies solicit and receive employee suggestions more than others, and company culture influences the use of employee suggestions. Suppose a ...a. Suppose you want to determine whether the average values for populations 1 and 2 are different, and you randomly gather the following data.Test your conjecture, using a probability of committing a Type I error of .01. ...Use the data given and a 1% level of significance to test the following hypotheses. Assume the differences are normally distributed in the population.H0: D = 0 .......Ha: D >0A nationally known supermarket decided to promote its own brand of soft drinks on TV for two weeks. Before the ad campaign, the company randomly selected 21 of its stores across the United States to be part of a study to ...Many Americans spend time worrying about paying their bills. A survey by Fleishman-Hilliard Research for MassMutual discovered that 60% of Americans with kids say that paying bills is a major concern. This proportion ...Post your question