In: Statistics and Probability
Sally (252.7, 374.5) Tim (247.7,395.3)
The confidence intervals overlap, so is there enough evidence in what we have calculated from the sample to conclude that Sally’s average price quote is statistically different from Tim’s. (Explain your answer
We see that Sally (252.7, 374.5) and Tim (247.7,395.3) confidence interval overlap
This does not mean that there is enough evidence that the prices quoted are statistically different
On the other hand if at 95% confidence ie alpha=0.05 we see that the confidence interval do not overlap for 2 independent values
We can be certain that there is significant difference between the 2 values
The condition that if confidence interval do not overlap there is significant difference does not imply that if there is overlap there is no significanrt difference
We need to look at the complete data and the respective statitical parameters to come to the conclusion about the significant difference