Construct a Confidence Interval For $\mu _ { \mathrm { d } }$

question 158

Multiple Choice

Construct a confidence interval for $\mu _ { \mathrm { d } }$ , the mean of the differences d for the population of paired data. Assume that the
population of paired differences is normally distributed.
-A manager at a bank is interested in the standard deviation of the waiting times when a single waiting line is used and when individual lines are used. He wishes to test the claim that the population standard deviation for waiting times when multiple lines are used is greater than the population standard deviation for waiting times when a single line is used. Find the P-value for a test of this claim given the following sample data. You won't be able to find the exact P-value, but will be able to give a range of possible values.
Sample 1: multiple waiting lines: $\mathrm { n } _ { 1 } = 13 , \mathrm {~s} 1 = 2.1$ minutes
Sample 2: single waiting line: $n _ { 2 } = 16 , s _ { 2 } = 1.1$ minutes

• A) \(0.005 < \mathrm { P }\)-value \(< 0.01\)
• B) \(0.02 < \mathrm { P }\)-value \(< 0.05\)
• C) \(0.025 < \mathrm { P }\)-value \(< 0.05\)
• D) \(0.01 < \mathrm { P }\)-value \(< 0.025\)

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Definitions:

Credit Enhancements

Strategies or financial products used to improve the credit worthiness of a financial transaction, reducing the risk for investors.

Warrants

Call options issued by a company allowing the holder to buy a stated number of shares of stock from a company at a specified price. Warrants are generally distributed with debt, or preferred stock, to induce investors to buy those securities at a lower cost.

Option

A contract that gives its holder the right to buy or sell an asset at some predetermined price within a specified period of time.

Sweetener

A feature that makes a security more attractive to some investors, thereby inducing them to accept a lower current yield. Convertible features and warrants are examples of sweeteners.