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Q1) Newspaper article explained the opening of Whole Foods Market in Time-Warner building in New York City. Following data compared prices of some kitchen staples at new Whole Foods Market and at Fairy supermarket located about 25 blocks from Time-Warner building:
Item
Whole Foods (X1)
Fairway(X2)
Half-gallon milk
2.19
1.35
Dozen eggs
2.39
1.69
Tropicana orange juice (64 oz)
2
2.49
Head of Boston lettuce
1.98
1.29
Ground round, 1 lb
4.99
3.39
Bumble Bee tuna, 6 oz can
1.79
1.33
Uranny Smith apples (1 lb)
1.49
Box DeCecco linguini
1.99
1.59
Salmon Steak 1 lb
7.99
5.99
Whole chicken, per pound
i) At 0.01 level of significance, is there evidence that mean price is higher at Whole Foods Market than at Fairyway supermarket?
ii) Interpret the meaning of p-value in (i).
iii) What supposition is essential to carry out the test in (i)?
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