Question

In: Statistics and Probability

A businesswomen was interested in determining whether there is a significant difference in the average monthly...

A businesswomen was interested in determining whether there is a significant difference in the average monthly cost per child for childcare outside the home between state supported facilities and privately owned facilities. Two independent random samples were selected yielding the following information:

State Supported Facilities

Privately Owned facilities

Sample Size

64

64

Sample Mean

725

675

Standard Deviation

95

80
  1. Find a 90% confidence interval for the true difference in average monthly cost of the childcare.
  2.    Based on the interval in a), can one conclude there is a significant difference in average cost of childcare between the state supported facilities and privately owned facilities? Justify your answer.

Solutions

Expert Solution

Let denote the average monthly cost of the childcare in State Supported Facilities and Privately Owned facilities respectively.

b) Since the confidence interval does not include 0, so at 90% level of confidence or at 10% level of significance, we can conclude that there is a significant difference in average cost of childcare between the state supported facilities and privately owned facilities.

orchestra answered 1 year ago
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