A survey carried out by John claims that the average cost of living for households in City 1 is more than that in City 2: (a) Specify the competing hypotheses to test John's claim. (b) Calculate the value of the test statistic. (c) At the 5% significance level, is John's claim supported by the data? E

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Confidence Intervals

When we calculate intervals in probability and statistics, it can be simply termed as finding out a confidence interval. The confidence interval is usually calculated from the data set which is observed. The value of the parameter that needs to be calculated is present here only.