Construct a Confidence Interval For $\mu _ { d }$ The Mean of the Differences D for the Population

question 36

Multiple Choice

Construct a confidence interval for $\mu _ { d }$ the mean of the differences d for the population of paired data. Assume that the population of paired differences is normally distributed. Using the sample paired data below, construct a 90% confidence interval for the population mean of all differences.
$\begin{array} { l | l l l l l } \mathrm { A } & 5.0 & 5.1 & 4.6 & 3.5 & 6.0 \\\hline \mathrm { B } & 4.7 & 3.9 & 4.2 & 4.2 & 3.7\end{array}$

• A) \(0.22 < \mu _ { d } < 7.48\)
• B) \(- 0.37 < \mu _ { d } < 1.77\)
• C) \(- 0.07 < \mu _ { d } < 1.47\)
• D) \(- 0.31 < \mu _ { d } < 1.71\)

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Definitions:

Sunk Costs

Expenses that have already been incurred and cannot be recovered, which should not affect future decision-making but often do.

Faulty Hindsight

The misjudgment of the reasons behind past decisions based on the outcome rather than on the information available at the time.

Sunk Costs

Costs that have already been incurred and cannot be recovered, which should not influence future business or personal decisions.

Escalated Commitment

A pattern of behavior in which an individual or group continues to rationalize their decisions, invest additional resources, and follow a failing course of action.