Construct a 90% Confidence Interval For $\mu _ { 1 } - \mu _ { 2 } .$

question 52

Multiple Choice

Construct a 90% confidence interval for $\mu _ { 1 } - \mu _ { 2 } .$ Two samples are random, independent, and come from populations that are normally distributed. The sample statistics are given below. Assume that $$\sigma _ { 1 } ^ { 2 } = \sigma { } _ { 2 } ^ { 2 }$$ $$\begin{array} { l l } \mathrm { n } _ { 1 } = 10 & \mathrm { n } _ { 2 } = 12 \\\overline { \mathrm { x } } 1 = 25 & \overline { \mathrm { x } } 2 = 23 \\\mathrm {~s} _ { 1 } = 1.5 & \mathrm {~s} _ { 2 } = 1.9\end{array}$$

• A)(0.721, 3.279)
• B)(1.335, 3.012)
• C)(1.413, 3.124)
• D)(1.554, 3.651)

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Definitions:

Accounts Payable

Obligations of a business to settle short-term debt with creditors or suppliers.

Capital Gain/Loss

The increase (gain) or decrease (loss) in the value of an investment or property from its purchase price.

Depreciation Life

The estimated period over which a tangible asset is expected to be used in business operations, for the purpose of calculating depreciation.

Straight Line

A method of depreciation that allocates an asset’s cost evenly throughout its useful life.