Answered: Two neighboring towns share a school…

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

See similar textbooks

Related questions

Question

Two neighboring towns share a school district. A group of students at the high school is doing a study on the income in the two towns. Based on what they learned in their statistics class, they will assume that the distribution of income is right-skewed. However, large samples should allow them to perform a two-sample t test for equality of average household income. Let the μ₁ denote the average household income of town X and μ₂ the average household income for town Y. The hypotheses that the group of students will test are H₀: μ₁ = μ₂ versus H_a: μ₁ ≠ μ₂. Based on independent samples of 65 households from each of the two towns, the students calculated the following summary measures (in thousands of dollars): = 45.6 and s₁ = 8.5, = 38.4 and s₂ = 6.5.

What is the right bound of a 95% confidence interval for the difference in average household income in the two neighboring towns (rounded to 3 decimal places)? Do not assume the population standard deviations are equal.

Expert Solution