Twelve Dieters Lost an Average of 5 $- 1.8 < \mu _ { 1 } - \mu _ { 2 } < 0.4$

question 13

Multiple Choice

Twelve dieters lost an average of 5.2 pounds in 6 weeks when given a special diet plus a "fat-blocking" herbal formula. A control group of twelve other dieters were given the
Same diet, but without the herbal formula, and lost an average of 4.5 pounds during the
Same time. The standard deviation of the "fat-blocker" sample was 2.8 and the standard
Deviation of the control group was 2.5. Find the 95% confidence interval for the
Differences of the means.

• A) \(- 1.8 < \mu _ { 1 } - \mu _ { 2 } < 0.4\)
• B) \(- 0.4 < \mu _ { 1 } - \mu _ { 2 } < 1.8\)
• C) \(- 1.7 < \mu _ { 1 } - \mu _ { 2 } < 3.1\)
• D) \(- 1.2 < \mu _ { 1 } - \mu _ { 2 } < 2.6\)

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Definitions:

Coupon Bond

A type of bond that pays the holder a fixed interest rate (coupon) over its lifetime, and the principal amount is repaid at maturity.

Yield To Maturity

Yield to Maturity (YTM) is the total anticipated return on a bond if the bond is held until it matures, accounting for interest payments and principal repayment.

Par Value

Par value is the face value of a bond or the stock value stated in the corporate charter, which signifies the minimum price that the securities can be issued for.

Coupon Rate

The interest rate on a bond, expressed as a percentage of the bond's face value, paid by the bond issuer to the bondholder.