1.Per-share earnings data comparing the current quarter’s earnings with the previous quarterare in the file entitled Earnings2005 (The Wall Street Journal, January 27, XXXXXXXXXXProvidea 95%...

1.Per-share earnings data comparing the current quarter’s earnings with the previous quarterare in the file entitled Earnings2005 (The Wall Street Journal, January 27, 2006). Providea 95% confidence interval estimate of the difference between the population mean for thecurrent quarter versus the previous quarter. Have earnings increased?2. Bank of America’s Consumer Spending Survey collected data on annual credit cardcharges in seven different categories of expenditures: transportation, groceries, dining out,household expenses, home furnishings, apparel, and entertainment (US Airways Attaché,December 2003). Using data from a sample of 42 credit card accounts, assume that eachaccount was used to identify the annual credit card charges for groceries (population 1) andthe annual credit card charges for dining out (population 2). Using the difference data, thesample mean difference was  $850, and the sample standard deviation was sd  $1123.a. Formulate the null and alternative hypotheses to test for no difference between thepopulation mean credit card charges for groceries and the population mean credit cardcharges for dining out.b. Use a .05 level of significance. Can you conclude that the population means differ?What is the p-value?c. Which category, groceries or dining out, has a higher population mean annual creditcard charge? What is the point estimate of the difference between the populationmeans? What is the 95% confidence interval estimate of the difference between thepopulation means?