The U.S Energy Information Administration publishes data on residential consumption and expenditures inResidential Energy Consumption Survey: Consumptions and Expenditures. Suppose you want to decide whether last year's mean annual fuel expenditure for households using natural gas is different from that of for households using only electricity. Natural Gas Electricity 2002 1456 1376 1452 1185 1327 1227 1402 1394 1480 1213 1014 1541 1321 1338 1400 1459 1394 1495 1526 1358 1070 1168 1532 1801 1478 1376 1180 1421 1351 1579 1305 1456 1475 1664 1461 1402 976 1369 1379 987 1002 1495 1507 1636 1450 1177 1150 1698 1249 1377 1352 1266 1109 1648 1557 1491 949 1351 1259 1505 1355 1574 1179 1393 1456 a) Construct 95% confidence intervalfor the difference between the mean fuelexpenditure for households using natural gas and electricity and interpret your answer. b) Construct 90% confidence interval for the difference between the households which have naturalgas and electricity bills less than 1400 less than and interpret your answer.

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Chapter10: Statistics
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The U.S Energy Information Administration publishes data on residential consumption and expenditures
inResidential Energy Consumption Survey: Consumptions and Expenditures. Suppose you want to decide whether
last year's mean annual fuel expenditure for households using natural gas is different from that of for households
using only electricity.
Natural Gas
Electricity
2002
1456
1394
1480
1376
1452
1213
1014
1541
1321
1338
1400
1185
1327
1459
1394
1495
1526
1358
1070
1227
1402
1168
1532
1801
1478
1376
1180
1421
1351
1579
1475
1664
1461
1402
976
1305
1456
1369
1379
987
1002
1495
1507
1636
1450
1177
1150
1698
1249
1377
1352
1266
1109
1648
1557
1491
949
1351
1259
1505
1355
1574
1179
1393
1456
a) Construct 95% confidence intervalfor the difference between the mean fuelexpenditure for households
using natural gas and electricity and interpret your answer.
b) Construct 90% confidence interval for the difference between the households which have naturalgas and
electricity bills less than 1400 less than and interpret your answer.
Transcribed Image Text:The U.S Energy Information Administration publishes data on residential consumption and expenditures inResidential Energy Consumption Survey: Consumptions and Expenditures. Suppose you want to decide whether last year's mean annual fuel expenditure for households using natural gas is different from that of for households using only electricity. Natural Gas Electricity 2002 1456 1394 1480 1376 1452 1213 1014 1541 1321 1338 1400 1185 1327 1459 1394 1495 1526 1358 1070 1227 1402 1168 1532 1801 1478 1376 1180 1421 1351 1579 1475 1664 1461 1402 976 1305 1456 1369 1379 987 1002 1495 1507 1636 1450 1177 1150 1698 1249 1377 1352 1266 1109 1648 1557 1491 949 1351 1259 1505 1355 1574 1179 1393 1456 a) Construct 95% confidence intervalfor the difference between the mean fuelexpenditure for households using natural gas and electricity and interpret your answer. b) Construct 90% confidence interval for the difference between the households which have naturalgas and electricity bills less than 1400 less than and interpret your answer.
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