State What the Given Confidence Interval Suggests About the Two

question 174

Essay

State what the given confidence interval suggests about the two population means.
-A researcher was interested in comparing the response times of two different cab companies. Companies A and
B were each called at 50 randomly selected times. The calls to company A were made independently of the calls
to company B. The response times were recorded and the summary statistics were as follows: $$\begin{array} { l c c } & \text { Company A } & \text { Company B } \\\hline \text { Mean response time } & 7.6 \text { mins } & 6.9 \text { mins } \\\text { Standard deviation } & 1.4 \text { mins } & 1.7 \text { mins }\end{array}$$ Use a 0.02 significance level to test the claim that the mean response time for company A differs from the mean
response time for company B. Use the P-value method of hypothesis testing.

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Definitions:

Pollution Permits

Licenses that allow entities to emit a specific amount of pollutants into the environment, often traded in markets.

Emissions Tax

A tax that depends on the amount of pollution a firm produces.

Marginal Social Cost

The additional cost to society as a whole from producing one more unit of a good or service.

Environmental Standard

Regulations set by law or by an organization to limit the amount of pollutants or emissions produced by companies or individuals to protect the environment.