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.

Downtown Store North Mall Store
Sample size 25 20
Sample mean $9 $8
Sample standard deviation $2 $1
A 95% interval estimate for the difference between the two population means is

1.09 to 4.08

0.07 to 1.9

1.08 to 2.92

1.9 to 2.08

Respuesta :

Answer: 0.07 to 1.9

Step-by-step explanation:

Let [tex]\mu_1[/tex] and [tex]\mu_2[/tex] be the population mean of hourly wages of employees of two branches of a department store (Downtown Store and  North Mall Store)

As per given , we have

[tex]n_1=25\\\\ n_2=20[/tex]

[tex]\overline{x}_1=\$9\\\\\overline{x}_2=\$8[/tex]

[tex]s_1=\$2\\\\s_1=\$1[/tex]

Degree of freedom : [tex]\dfrac{(\dfrac{s_1^2}{n_1}+\dfrac{s _2^2}{n_2})^2}{\dfrac{(\dfrac{s_1^2}{n_1})^2}{n_1-1}+\dfrac{(\dfrac{s_2^2}{n_2})^2}{n_2-1}}[/tex]

[tex]=\dfrac{(\dfrac{2^2}{25}+\dfrac{1^2}{20})^2}{\dfrac{(\dfrac{2^2}{25})^2}{24}+\dfrac{(\dfrac{1^2}{20})^2}{19}} =36[/tex]

Critical value for 95% confidence interval :

[tex]t_{\alpha/2, df}=t_{0.025,\ 36}=2.028[/tex]

Then, 95% interval estimate for the difference between the two population means will be

[tex]\overline{x}_1-\overline{x}_2\pm z_{\alpha/2}\sqrt{\dfrac{s_1^2}{n_1}+\dfrac{s _2^2}{n_2}}[/tex]

[tex]9-8\pm (2.028)\sqrt{\dfrac{2^2}{25}+\dfrac{1^2}{20}}[/tex]

[tex]1\pm 0.93=(1-0.93,\ 1+0.93 ) = (0.07,\ 1.93)[/tex]

Hence, A 95% interval estimate for the difference between the two population means is [tex](0.07, 1.93)[/tex] .

i.e. 0.07 to 1.9