Maxforce, Inc A Develop a 95% Confidence Interval Estimate for the Difference

question 38

Short Answer

Maxforce, Inc., manufactures racquetball racquets by two different manufacturing processes A and B). Because the management of this company is interested in estimating the difference between the average time it takes each process to produce a racquet, they select independent samples from each process. The results of the samples are shown below.
$$\begin{array} { l c c } & \text { Procass A } & \text { Praceas } \text { B } \\\text { Sample Size } & 32 & 35 \\\text { Sample Mean in minutes) } & 43 & 47 \\\text { Pupulation Variance } \sigma ^ { 2 } \text { ) } & 64 & 7\end{array}$$
a. Develop a 95% confidence interval estimate for the difference between the average time of the two processes.
b. Is there conclusive evidence to prove that one process takes longer than the other? If yes, which process? Explain.

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Definitions:

Market Maker

A firm or individual who actively quotes both buy and sell prices for financial instruments, contributing to liquidity and efficiency in the markets.

Demand

The quantity of a product or service that consumers are willing and able to purchase at various prices during a given period.

Bid-ask Spread

The gap between the maximum price a buyer is ready to offer (bid) and the minimum price a seller agrees to sell (ask) for an asset.

Market Maker

A firm or individual that actively quotes both a buy and sell price in a financial market, providing liquidity and facilitating trading.