Economics: Cost of Living Index In the following data pairs, A represents the cost of living index for utilities and B represents the cost of living index for transportation. The data are paired by metropolitan areas in the United States. A random sample of 46 metropolitan areas gave the following information

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

A: 132 109 128 122 100 96 100 131 97 B: 125 118 139 104 103 107 109 117 105 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 A: 90 84 85 106 83 101 89 125 105 B: 100 91 103 103 109 109 94 114 113 A: 118 133 104 84 80 77 90 92 90 B: 120 130 117 109 107 104 104 113 101 A: 106 95 110 112 105 93 119 99 109 B: 96 109 103 107 103 102 101 86 94 A: 109 113 90 121 120 85 91 91 97 B: 88 100 104 119 116 104 121 108 86 A: 95 115 99 86 88 106 80 108 90 87 B: 100 83 88 103 94 125 115 100 96 127

(a) Let d be the random variable d 5A 2B. Use a calculator to verify that d < 25.739 and sd < 15.910.

(b) Do the data indicate that the U.S. population mean cost of living index for utilities is less than that for transportation in these areas?

Use a 5 0.05.

AppendixLO1