Answer :
Answer:
The 95% confidence interval for the difference of means is (7.67, 16.33).
The estimate is Md = 12.
The standard error is sM_d = 2.176.
Step-by-step explanation:
We have to calculate a 95% confidence interval for the difference between means.
The sample 1 (this year's sales), of size n1=36 has a mean of 53 and a standard deviation of 12.
The sample 2 (last year's sales), of size n2=49 has a mean of 41 and a standard deviation of 6.
The difference between sample means is Md=12.
[tex]M_d=M_1-M_2=53-41=12[/tex]
The estimated standard error of the difference between means is computed using the formula:
[tex]s_{M_d}=\sqrt{\dfrac{\sigma_1^2}{n_1}+\dfrac{\sigma_2^2}{n_2}}=\sqrt{\dfrac{12^2}{36}+\dfrac{6^2}{49}}\\\\\\s_{M_d}=\sqrt{4+0.735}=\sqrt{4.735}=2.176[/tex]
The degrees of freedom are:
[tex]df=n_1+n_2-1=36+49-2=83[/tex]
The critical t-value for a 95% confidence interval and 83 degrees of fredom is t=1.989.
The margin of error (MOE) can be calculated as:
[tex]MOE=t \cdot s_{M_d}=1.989 \cdot 2.176=4.328[/tex]
Then, the lower and upper bounds of the confidence interval are:
[tex]LL=M_d-t \cdot s_{M_d} = 12-4.328=7.67\\\\UL=M_d+t \cdot s_{M_d} = 12+4.328=16.33[/tex]
The 95% confidence interval for the difference of means is (7.67, 16.33).