Construct a Confidence Interval for µD, the Mean of the Differences

question 12

Multiple Choice

Construct a confidence interval for µd, 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 $\mathrm { x } - \mathrm { y }$ .
$\begin{array}{c|ccccc}\mathrm{x} & 3.3 & 6.8 & 5.9 & 4.3 & 7.6 \\\hline \mathrm{y} & 3.0 & 5.6 & 5.5 & 5.0 & 5.3\end{array}$

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

---

Definitions:

Budgeted Overhead

An estimate of the indirect costs or overheads that a business expects to incur during a specific period.

Direct Labor Hour

The actual time spent by workers directly producing a product or providing a service.

Actual Overhead

The actual amount of indirect costs associated with production, including utilities, maintenance, and factory overhead, incurred during a specific period.

Labor Rate Variance

A measure of the difference between the actual cost of labor and the budgeted or standard cost.