The advertising for a convenience store chain claims its merchandise is comparably priced with that
Question: The advertising for a convenience store chain claims its merchandise is comparably priced with that of an enormous big box discount store chain which contained supermarket departments. Contrarily, a grocery industry analyst claims a gallon of fat-free or skim milk sells for substantially more at Gas ‘N Grub, the convenience store chain, than at the Super Sale Mart, the big box discount retail chain with supermarkets. A random sample of 64 milk gallon prices from throughout the chain of Gas ‘N Grub stores yielded a sample mean price of $4.86; the population standard deviation is known from previous studies to be $0.48. A random sample of 36 milk gallon prices from throughout the chain of Super Sale Marts yielded a sample mean price of $4.59; the population standard deviation of these prices is again known from previous studies as $0.45. At the 5% level of significance, is the original claim that the prices are comparable regardless of the chain reasonable? [COMMENTS & HINTS: Clearly state the hypotheses. Use hypothesis testing, confidence levels, and p-values to justify or explain the conclusion. Clearly state the conclusion, interpreting it appropriately.]
Deliverables: Word Document
