Case Study 2 A study was made to compare the cost of supporting a family of four for a year in different foreign cities. The lifestyle of living at home on an annual income of $ 75,000 was the standard against which living in foreign cities was compared. A comparable living standard in Kuala Lumpur and Bangkok was attained for about $ 64,000. Suppose an executive wants to determine whether there is any difference between Kuala Lumpur and Bangkok in the average annual cost of supporting her family of four in the manner to which they are accustomed. She uses the following data, randomly gathered from 11 families in each city, to test this difference. She assumes the annual cost is normally distributed and the population variances are equal. What does the executive find?

Kuala Lumpur ($)	Bangkok ($)
69,000	65,000
64,500	64,000
67,500	66,000
64,500	64,900
66,700	62,000
68,000	60,500
65,000	62,500
69,000	63,000
71,000	64,500
68,500	63,500
67,500	62,400

a. Please use a 1% level of significance to conduct a test. In your test, you need to - State your null hypothesis Ho and your alternative hypothesis Ha. - Explain what type of hypothesis test you will use. - Use a diagram to show the hypothesis test process and results. - Interpret the result b. Would the result be the same at a 0.05 level of significance? Why?

Note: Use diagram to show the hypothesis test process and results .