We Are Interested in Comparing the Average Supermarket Prices of Two

question 75

Multiple Choice

We are interested in comparing the average supermarket prices of two leading colas. Our sample was taken by randomly selecting eight supermarkets and recording the price of a six-pack of each
Brand of cola at each supermarket. The data are shown in the following table:

Find a $98 \%$ confidence interval for the difference in mean price of brand 1 and brand 2 .

• A) \(0.0375 \pm 0.0471\)
• B) \(0.0375 \pm 0.0347\)
• C) \(0.0375 \pm 0.1393\)
• D) \(0.0375 \pm 0.0404\)

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Definitions:

Federal Inheritance Tax

A tax imposed by the federal government on the transfer of estate from a deceased person to their beneficiaries or heirs.

General Sales Tax

A tax imposed on sales transactions, usually calculated as a percentage of the selling price of goods and services.

Ability-to-pay Philosophy

A principle of taxation that argues taxes should be levied according to a taxpayer's capacity to pay, focusing on fairness in the distribution of tax burdens.

Progressive Income Tax

A tax system where the tax rate increases as the taxable amount or income of the taxpayer increases.