Question: A newspaper article discussed the opening of a Whole Foods Market in the Time-Warner building in New York City. The data in file WHOLEFOODS1 compares the prices of some kitchen staples at the Whole Foods Market and at the Fairway Market located about 15 blocks from the Time-Warner building.

1. At the .01 level of significance, is there evidence that the mean price is higher at Whole Foods Market than at the Fairway supermarket?

   Complete the following:
   State H 0 .	\[{{\mu }_{1}}={{\mu }_{2}}\]
   2. State H 1 .	\[{{\mu }_{1}}>{{\mu }_{2}}\]
   3. State the value of α.	0.01
   4. State the value of the test statistic.	0.852
   5. State the p-value.	0.2027
   6. State the decision in terms of H 0 and why.	Fail to reject Ho (p > 0.05)
   7. State the decision in terms of the problem.	There is enough evidence to claim that the mean price is higher at Whole Foods Market than at the Fairway supermarket

2. What assumption is necessary about the population distribution in order to perform the test in (a)?
3. Construct a 99% confidence interval estimate of the difference in price between Whole Foods and Fairway. Do the results of the confidence interval and the hypothesis test agree? Explain.

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