Discuss the below:
Q: Amazon.com claims that its textbook prices are cheaper than those offered by the local college bookstore. To test this claim, you randomly select 15 textbooks that are sold by both.
a. Construct a 95% confidence interval estimate for the mean selling price of textbooks at the local bookstore.
b. Construct a 95% confidence interval estimate for the mean selling price of textbooks at Amazon.com.
c. Do the results of parts (a) and (b) support the claim made by Amazon? Explain your answer.
d. What must be true about the data sets to make the confidence intervals you constructed in parts (a) and (b) valid?
| 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 |