Question

Poor millennials ~ Skyrocketing cost of living and crippling student debt have made it much more difficult for millennials to accumulate wealth. A random sample of 60 baby boomer households and a random sample of 76 millennial households were selected. The summary statistics are given in the table below in thousands of dollars. Give all answers to four decimals.

Population/Group	Generation	Mean Household Wealth	Standard Deviation
1	Baby Boomers	1.2	0.027
2	Millennials	0.12	0.020

Kanye, an economics student, wants to estimate the difference between the actual mean household wealth of baby boomers and millennials.

1. What is the lower bound for a 90% confidence interval for the difference between the population means?
2. What is the upper bound for a 90% confidence interval for the difference between the population means?
3. Which of the following conditions must be met for a confidence interval for the difference between two population means to be valid?

• There must be at least 10 success and 10 failure observations in each sample
• There must be at least 3 levels of the categorical variable
• The observations must be independent within the groups and between groups
• There must be an expected count of at least 30 for each level of the categorical variable
• Both population data distributions must be nearly normal or both sample sizes must be at least 30
• There must be at least 30 success and 30 failure observations in each sample

Answer 1