Construct a 95% Confidence Interval For $\mu _ { 1 } - \mu _ { 2 }$

question 59

Multiple Choice

Construct a 95% confidence interval for $\mu _ { 1 } - \mu _ { 2 }$ Assume the two samples are random and independent. The sample statistics are given below.
Population statistics: $\sigma _ { 1 } = 1.5 \text { and } \sigma _ { 2 } = 1.9$ Sample statistics: $\overline { \mathrm { x } } 1 = 25 , \mathrm { n } _ { 1 } = 50 \text { and } \overline { \mathrm { x } } 2 = 23 , \mathrm { n } _ { 2 } = 60$

• A)(1.364, 2.636)
• B)(1.572, 2.987)
• C)(1.723, 3.012)
• D)(1.919, 3.142)

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Definitions:

Inflation

Inflation is the rate at which the general level of prices for goods and services is rising, eroding purchasing power over time.

Ceteris Paribus

A Latin term used in economics to describe the analysis of a condition under the assumption that all other variables remain unchanged.

Scarcity

The basic economic issue arises from unlimited human desires facing limited resources on the planet.

Free Lunch

A term that implies you cannot get something for nothing, often used in the context that every choice has a cost.