Economics: Cost of Living Index In the following data pairs, A represents the cost of living index for housing and B represents 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 (Reference:

Statistical Abstract of the United States, 121st edition).

(a) Let d be the random variable d 5A 2B. Use a calculator to verify that d < 2.472 and sd < 12.124.

(b) 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 a 5 0.05.

AppendixLO1