7. Suppose a market analyst wants to determine the difference in the average price if a gallon of whole milk in Seattle and Atlanta. To do so, he takes a telephone survey of some randomly selected consumers in Seattle. He then takes another sample of some respondents from Atlanta. Use the following sample of prices of a gallon of milk in both the cities, solve the following questions. Sample 1 Seattle $2.55 $2.36 2.67 2.54 2.50 2.54 2.61 2.80 3.10 2.61 (i) Test the hypothesis that H0: 1 2 Sample 2 Atlanta $2.23 $2.40 2.30 2.33 2.19 2.29 2.41 2.18 $2.43 2.43 2.38 2.49 2.57 $2.39 2.40 2.23 2.29 2 2 2 = 2 against the alternative hypothesis H0: 1 2 at 5% label of significance. (a) What is the point estimate of the difference between the two population mean difference Seattle Atlanta ? (b) Test the hypothesis that H 0 : Seattle Atlanta = 0 against H a : Seattle Atlanta 0 . Use 5% level of significance. Show all six steps. Use Classical approach and p-value approach. 8. The following information was obtained from matched samples. The daily production rates for a sample of workers before and after a training program are shown below. Worker Before After 1 20 22 2 25 23 3 27 27 4 23 20 5 22 25 6 20 19 7 17 18 Questions: (i) Estimate the point estimate for the difference between the means of the two populations d = A B . 0 against H a : d > 0 at 5% label of significance, (ii) Test the null hypothesis H0: d (iii) Compute a 95% confidence interval for the difference between the means of the two populations d = A B