The labor quotation department at Excabar, a large manufacturing company, wants to verify the accuracy of their labor bidding process (estimated cost per unit versus actual cost per unit). They have randomly chosen 35 product quotations that subsequently were successful (meaning the company won the contract for the product). A portion of the data is shown in the accompanying table.

ProductActual cost/unitEstimated cost/unit

1.............................12.90...........................13.90

2.............................15.80...........................18.80

⋮.................................⋮....................................⋮

35...........................14.80...........................17.80

a. Specify the competing hypotheses to determine whether there is a difference between the estimated cost and the actual cost.

b. Using the appropriate commands in Excel, find the value of the test statistic and the p-value.

c. At the 1% significance level, what is the conclusion?