Discuss the below:
Q: Can students save money by buying their textbooks at Amazon.com? To investigate this possibility, a random sample of 15 textbooks used during a recent semester at Miami University was selected. The prices for these textbooks at both a local bookstore and through Amazon.com were recorded. The prices for the textbooks, including all relevant taxes and shipping are given below.
Textbook Book Store Amazon
Access 2000 Guidebook 52.22 57.34
HTML 4.0 CD with Java Script 52.74 44.47
Designing the Physical Education Curriculum 39.04 41.48
Service Management: Operations, Strategy and IT 101.28 73.72
Fundamentals of Real Estate Appraisal 37.45 42.04
Investments 113.41 95.38
Intermediate Financial Management 109.72 119.8
Real Estate Principles 101.28 62.48
The Automobile Age 29.49 32.43
Geographic Information Systems in Ecology 70.07 74.43
Geosystems: An Introduction to Physical Geography 83.87 83.81
Understanding Contemporary Africa 23.21 26.48
Early Childhood Education Today 72.8 73.48
System of Transcedental Idealism (1800) 17.41 20.98
Principles and Labs for Fitness and Wellness 37.72 40.43
(a) At the 0.01 level of significance, is there evidence of a difference between the mean price of textbooks at the local bookstore and Amazon.com?
(b) What assumption is necessary to perform this test?
(c) Construct a 99% confidence interval estimate of the mean difference in price. Interpret the interval.
(d) Compare the results of (a) and (c).