Gasoline prices reached record high levels in 16 countries during 2007.Two of the affected countries were India and China. The Global Automobile Association reported a sample mean price of $2.04 per gallon in India and sample mean price of $1.72 per gallon in China. Use a sample size of 40 for India data and a sample size of 35 for China data. Assume that prior studies indicate a population standard deviation of 0.10 in India and 0.08 in China.
1. What is a point estimate of the difference between the population mean prices per gallon in India and China?
2. What is the 95% confidence interval estimate of the difference between the population mean prices per gallon in the two countries?
3. Formulate null and alternate hypotheses and test whether there is significant difference between the means of the two samples. Use .05 level of significance.