In the following data pairs,Arepresents the cost of living index for housing andBrepresents the cost of living index for groceries. The data are paired by metropolitan areas in the United States. A random sample of 36 metropolitan areas gave the following information.

A:	132	107	128	124	100	96	100	131	97
B:	125	116	137	104	103	107	109	117	105

A:	120	115	98	111	93	97	111	110	92
B:	110	109	105	109	104	102	100	106	103

A:	85	109	123	115	107	96	108	104	128
B:	98	102	100	95	93	98	93	90	108

A:	121	85	91	115	114	86	115	90	113
B:	102	96	92	108	117	109	107	100	95

Do the data indicate that the U.S. population mean cost of living index for housing is higher than that for groceries in these areas? Use= 0.05. (Letd=AB.)

(a) What is the level of significance? State the null and alternate hypotheses. Will you use a left-tailed, right-tailed, or two-tailed test?

H₀:_d> 0;H₁:_d= 0; right-tailed

H₀:_d= 0;H₁:_d> 0; right-tailed

H₀:_d= 0;H₁:_d0; two-tailed

H₀:_d= 0;H₁:_d< 0; left-tailed (b) What sampling distribution will you use? What assumptions are you making?

The standard normal. We assume thatdhas an approximately uniform distribution.

The Student'st. We assume thatdhas an approximately uniform distribution.

The Student'st. We assume thatdhas an approximately normal distribution.

The standard normal. We assume thatdhas an approximately normal distribution.

What is the value of the sample test statistic? (Round your answer to three decimal places.) (c) Find (or estimate) theP-value. P-value > 0.250

0.125 <P-value < 0.250

0.050 <P-value < 0.125

0.025 <P-value < 0.050

0.005 <P-value < 0.025

P-value < 0.005 Sketch the sampling distribution and show the area corresponding to theP-value.

(d) Based on your answers in parts (a) to (c), will you reject or fail to reject the null hypothesis? Are the data statistically significant at level?

At the= 0.05 level, we fail to reject the null hypothesis and conclude the data are not statistically significant.

At the= 0.05 level, we fail to reject the null hypothesis and conclude the data are statistically significant.

At the= 0.05 level, we reject the null hypothesis and conclude the data are statistically significant.

At the= 0.05 level, we reject the null hypothesis and conclude the data are not statistically significant.

(e) State your conclusion in the context of the application.

Fail to reject the null hypothesis, there is sufficient evidence to claim that the mean cost of living index for housing is higher than that for groceries.

Fail to reject the null hypothesis, there is insufficient evidence to claim that the mean cost of living index for housing is higher than that for groceries.

Reject the null hypothesis, there is insufficient evidence to claim that the mean cost of living index for housing is higher than that for groceries.

Reject the null hypothesis, there is sufficient evidence to claim that the mean cost of living index for housing is higher than that for groceries.