A market research firm supplies manufacturers with estimates of the retail sales of their products from samples of retail stores. Marketing managers are prone to look at the estimate and ignore sampling error. An SRS of stores this year shows mean sales of units of a small appliance, with a standard deviation of units. During the same point in time last year, an SRS of stores had mean sales of units, with standard deviation units. An increase from to is a rise of about 10%.

1. Construct a 95% confidence interval estimate of the difference , where is the mean of this year's sales and is the mean of last year's sales.

(a)

(b) The margin of error is .

2. At a significance level, is there sufficient evidence to show that sales this year are different from last year?




You can earn partial credit on this problem.