In recent years, the United States and Japan have engaged in intense negotiations regarding restrictions on trade between the two countries. One of the claims made repeatedly by U.S. officials is that many Japanese manufacturers price their goods higher in Japan than in the United States, in effect subsidizing low prices in the United States by extremely high prices in Japan. According to the U.S. argument, Japan accomplishes this by keeping competitive U.S. goods from reaching the Japanese marketplace.

		Automobile Retail Prices (thousands of dollars)
USA Sales:	18.2	16.2	17.2	18.7	18.4	16.6	14.9	16.8	12.1	10.8
	18.5	15.5	16.2	16.3	18.2	19.5	13.2	16.8	12.9	17.2
	18.2	16.3	16.8	16.4	18.6	15.6	17.1	18.1	18.9	19.0
	17.3	18.8	14.9	16.7	20.3	17.1	14.6	17.2	13.0	18.4
	16.9	13.3	16.3	15.9	16.6	17.6	16.0	17.1	14.6	18.0
Japan Sales:	18.5	14.0	18.2	21.1	13.9	18.7	14.9	16.4	16.3	18.0
	16.8	19.8	17.3	16.6	14.9	16.3	16.5	15.4	17.6	20.1
	16.4	18.0	17.5	18.4	19.8	14.8	18.2	16.7	20.2	16.2

1. Construct a 95% confidence interval for the difference between the two retail prices
2. Test the hypothesis that higher retail prices on average are charged for Japanese automobiles in Japan than in the USA at 5% level of significance
3. What is the observed p-value