Question

In: Statistics and Probability

In order to estimate the difference between the average hourly wages of employees of two branches...

In order to estimate the difference between the average hourly wages of employees of two branches of a department store, the following data have been gathered. Assume the degrees of freedom are 36. (Assume unequal variance)

Sample 1

Sample 2

Downtown Store

North Mall Store

n

25

20

xbar

$9

$9

s

$2

$1

Q. What is a point estimate for the difference between the population means?

Q. What is the critical value for a 95% confidence interval for the difference between the two populations means?

Q. What is the margin of error for a 95% confidence interval for the difference between the two population means? (Provide 2 decimals)

Q. What is the 95% confidence interval for the difference between the two populations means?

Lower limit =      (Provide 2 decimals)

Upper limit =      (Provide 2 decimals)

Solutions

Expert Solution

a) point estimate = difference in sample means = x̅1-x̅2 =    9.000   -   9.0000   =   0.0000

b)

Degree of freedom, DF=       36  
t-critical value =    t α/2 =    2.028   (excel formula =t.inv(α/2,df)

c)

std error , SE =    √(s1²/n1+s2²/n2) =    0.458          
margin of error, E = t*SE =    2.028   *   0.458   =   0.93

4)

confidence interval is                   
Interval Lower Limit = (x̅1-x̅2) - E =    0.0000   -   0.929   =   -0.93
Interval Upper Limit = (x̅1-x̅2) + E =    0.0000   -   0.929   =   0.93

please revert for doubt..


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