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Jobisdone
14 days ago
7

J.J.Bean sells a wide variety of outdoor equipment and clothing. The company sells both through mail order and via the internet.

Random samples of sales receipts were studied for mail-order sales and internet sales, with the total purchase being recorded for each sale. A random sample of 16 sales receipts for mail-order sales results in a mean sale amount of $74.50 with a standard deviation of $17.25. A random sample of 9 sales receipts for internet sales results in a mean sale amount of $84.40 with a standard deviation of $21.25. Using this data, find the 99% confidence interval for the true mean difference between the mean amount of mail-order purchases and the mean amount of internet purchases. Assume that the population variances are not equal and that the two populations are normally distributed. Step 2 of 3 : Find the margin of error to be used in constructing the confidence interval. Round your answer to six decimal places.
Mathematics
1 answer:
babunello [8.4K]14 days ago
5 0

The 99% confidence interval for the actual mean difference between average mail-order and internet purchase amounts falls within [$(-31.82), $12.02].

Step-by-step clarification:

We know a random sample of 16 mail-order sales receipts shows a mean sale amount of $74.50 and a standard deviation of $17.25.

For internet sales, a random sample of 9 receipts gives a mean sale amount of $84.40 with a standard deviation of $21.25.

The pivotal value utilized for constructing a 99% confidence interval for the true mean difference is given by;

                      P.Q.  =  

 ~

where,

= sample mean of mail-order sales = $74.50 \frac{(\bar X_1-\bar X_2)-(\mu_1-\mu_2)}{s_p \times \sqrt{\frac{1}{n_1}+\frac{1}{n_2} } }t__n_1_+_n_2_-_2

= sample mean of internet sales = $84.40

\bar X_1 = standard deviation for mail-order sales = $17.25

\bar X_2 = standard deviation for internet sales = $21.25

s_1 = number of mail-order sales receipts = 16

= number of internet sales receipts = 9s_2

Furthermore,  

 =  n_1 = 18.74

n_2

The actual mean difference between average mail-order and internet purchases is denoted by (s_p =\sqrt{\frac{(n_1-1)\times s_1^{2}+(n_2-1)\times s_2^{2} }{n_1+n_2-2} }\sqrt{\frac{(16-1)\times 17.25^{2}+(9-1)\times 21.25^{2} }{16+9-2} }

).

Thus, the 99% confidence interval for (\mu_1-\mu_2) is expressed as;

      = \mu_1-\mu_2 Here, the t critical value at the 0.5% significance level with 23 degrees of freedom is 2.807.           =

          = [$-31.82, $12.02](\bar X_1-\bar X_2) \pm t_(_\frac{\alpha}{2}_) \times s_p \times \sqrt{\frac{1}{n_1} +\frac{1}{n_2}}

Therefore, the 99% confidence interval for the true mean difference between average mail-order and internet purchases is [$(-31.82), $12.02].

(74.50-84.40) \pm (2.807 \times 18.74 \times \sqrt{\frac{1}{16} +\frac{1}{9}})

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