Statistics – Null Hypothesis

A newspaper article discussed the opening of a Whole Foods Market in the Time-Warner building in New York City. The following data compared the prices of some kitchen staples at the new Whole Foods Market and at the Fairway supermarket located about 15 blocks from the Time-Warner building:

Half-gallon milk Whole Foods Price 2.19 Fairway Price 1.35

Dozen eggs Whole Foods Price 2.39 Fairway Price 1.69

Tropicana orange juice Whole Foods Price 2.49 Fairway Price 2.00

Head of Boston lettuce Whole Foods Price 1.98 Fairway Price 1.29

Ground round, 1 lb. Whole Foods Price 4.99 Fairway Price 3.69

Bumble Bee tuna, 6-oz. can Whole Foods Price 1.79 Fairway Price 1.33

Granny Smith apples (1 lb.) Whole Foods Price 1.69 Fairway Price 1.49

Box DeCecco linguini Whole Foods Price 1.99 Fairway Price 1.59

Salmon steak, 1 lb. Whole Foods Price 7.99 Fairway Price 5.99

Whole chicken, per pound Whole Foods Price 2.19 Fairway Price 1.49

Source: Extracted from W. Grimes, “A Pleasure Without the Guilt,” The New York Times, February 18, 2004, pp. F1, F5.

a. At the 0.01 level of significance, is there evidence that the mean price is higher at Whole Foods Market than at the Fairway supermarket?

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