The Bureau of Labor Statistics shows that the average insurance cost to a company per employee...

The Bureau of Labor Statistics shows that the average insurance cost to a company per employee per hour is $1.84 for managers and $1.99 for professional specialty workers. Suppose these figures were obtained from 14 managers and 15 professional specialty workers and that their respective population standard deviations are $0.38 and $0.51. Assume that such insurance costs are normally distributed in the population.
a. Calculate a 98% confidence interval to estimate the difference in the mean hourly company expenditures for insurance for these two groups. What is the value of the point estimate?
b. Test to determine whether there is a significant difference in the hourly rates employers pay for insurance between managers and professional specialty workers. Use a 2% level of significance.

Solutions

Expert Solution

orchestra answered 1 year ago

Next > < Previous

Related Solutions

The Bureau of Labor Statistics shows that the average insurance cost to a company per hour...

The Bureau of Labor Statistics shows that the average insurance cost to a company per hour worked for an employee by major industry group, is $2.94 for construction workers and $3.76 for manufacturing workers. Suppose these figures were obtained from 14 construction workers and 15 manufacturing workers and that their respective population standard deviations are $1.38 and $1.51. Assume that such insurance costs are normally distributed in the population. Calculate a 98% confidence interval to estimate the difference in the...

According to the Bureau of Labor Statistics, the annual wage for a federal employee in 2017...

According to the Bureau of Labor Statistics, the annual wage for a federal employee in 2017 was $76,250. Assume the population standard deviation is $28,025. A random sample of 34 federal employees is selected. What is the probability that the sample mean will be less than $70,000? What is the probability that the sample mean will be more than $74,000? What is the probability that the sample mean will be between $76,000 and $81,000.

The following data are from the Bureau of Labor Statistics and shows the outcome of women...

The following data are from the Bureau of Labor Statistics and shows the outcome of women at age 46: Less than High school High school grad Some college Bachelor’s degree + Ever Married 0.09 0.30 0.23 0.24 Ever Divorced 0.05 0.15 0.11 0.07 Never Married 0.02 0.05 0.03 0.04 Note that ever married and ever divorced are not mutually exclusive—the ”ever divorced” category is a subset of the ”ever married” category. (a) What percent of women were ever married? (b)...

The Bureau of Labor Statistics reported that the average yearly income of dentists in the year...

The Bureau of Labor Statistics reported that the average yearly income of dentists in the year 2011 was $110,000. A sample of 81 dentists, which was taken in 2012, showed an average yearly income of $120,000. Assume the standard deviation of the population of dentists’ incomes in 2012 is $36,000. a. We want to test to determine if there has been a significant increase in the average yearly income of dentists. Provide the null and the alternative hypotheses b. Compute...

According to the bureau of labor statistics, it takes an average of 22 weeks for someone...

According to the bureau of labor statistics, it takes an average of 22 weeks for someone over 55 to find a new job, compared with 16 weeks for younger workers. Assume that the probability distributions are normal and that the standard deviation is 2 weeks for both distributions. A) What is the probability that it takes a worker over the age of 55 more than 19 weeks to find a job? B) What is the probability that it takes a...

The Bureau of Labor Statistics reported that the average yearly income of dentists in the year...

The Bureau of Labor Statistics reported that the average yearly income of dentists in the year 2012 was $110,000. A sample of 81 dentists, which was taken in 2013, showed an average yearly income of $120,000. Assume the standard deviation of the population of dentists’ incomes in 2013 is $36,000. Test the hypotheses at 95% confidence.

1. The U.S. Bureau of Labor Statistics reports that the average annual expenditure on food and...

1. The U.S. Bureau of Labor Statistics reports that the average annual expenditure on food and drink for all families is $5,700 (Money, December 2003). Assume that annual expenditure on food and drink is normally distributed and that the standard deviation is $1,500. (50 points) (A) What is the range of expenditures of the 24.2% of families with the lowest annual spending on food and drink? (B) Assume total number of families is 500,000. How many families spend more than...

according to the u.s. bureau of labor statistics, the average weekly earnings of a production worker...

according to the u.s. bureau of labor statistics, the average weekly earnings of a production worker in july 2011 were 657.49. suppose a labor researcher wants to test to determine whether this figure is still accurate today. the researcher randomly selects 55 production workers from across the united states and obtains a representative earnings statement for one week each. the resulting sample average is 671.13. assuming a population standard deviation of 63.90 and a 10% level significance, determine whether the...

According to the producer price index database maintained by the Bureau of Labor Statistics, the average...

According to the producer price index database maintained by the Bureau of Labor Statistics, the average cost of computer equipment fell 4.8 percent between 2012 and 2013. Let’s see whether these changes are reflected in the income statement of Computer Tycoon Inc. for the year ended December 31, 2013. 2013 2012 Sales Revenue $ 105,000 $ 127,500 Cost of Goods Sold 62,500 73,500 Gross Profit 42,500 54,000 Selling, General, and Administrative Expenses 36,500 38,000 Interest Expense 550 500 Income before...

According to the producer price index database maintained by the Bureau of Labor Statistics, the average...

According to the producer price index database maintained by the Bureau of Labor Statistics, the average cost of computer equipment fell 8.1 percent between 2012 and 2013. Required: 1. Conduct a horizontal analysis by calculating the year-over-year changes in each line item, expressed in dollars and in percentages for the income statement of Computer Tycoon Inc. for the year ended December 31, 2013. (Decreases should be indicated by a minus sign. Round your percentage answers to 1 decimal place.) COMPUTER...

Subjects