Session 16

Interval Estimates (Two Population)

 Problem 01
The following data shows the mean duration of the games
of 2002 and 2003 season of major league basketball.

2002 Season 2003 Season

1 = 60 2 = 50
1 = 172 minutes 2 = 166 minutes
1 = 12 2 = 12

a. At 95% confidence, calculate the margin of error.

b. Construct a 95% confidence interval for the population
means of the two population.
Problem 02
The following data shows the sample of tons of cargo which
are handled by Memphis and Louisville Airports.
Memphis Louisville
1 = 12 1 = 10

Sample Mean = 9.3 Sample Mean = 4.2

Sample SD = 2.54 Sample SD = 1.43

a. What is the point estimate of the difference between

the two population means?
b. Develop a 95% confidence Interval of the difference
between the two population means.
 Problem 03
A survey was conducted in which readers rated their favorite
cruise ship. All ships are rated on a 100-point scale, with higher
values indicating better service. A sample of 37 ships that carry
fewer than 500 passengers resulted in an average rating of 85.36,
and a sample of 44 ships that carry 500 or more passengers
provided an average rating of 81.40. Assume that the population
standard deviation is 4.55 for ships that carry fewer than 500
passengers and 3.97 for ships that carry 500 or more passengers.
a. What is the point estimate of the difference between the
population mean rating for ships that carry fewer than 500
passengers and the population mean rating for ships that carry
500 or more passengers?
b. What is a 95% confidence interval estimate of the difference
between the population mean ratings for the two sizes of ships?
Hypothesis
The manager of an automobile dealership is
considering a new bonus plan designed to increase
sales volume. Currently, the mean sales volume is 14
automobiles per month. The manager wants to
conduct a research study to see whether the new
bonus plan increases sales volume. Define the null and
the alternative hypotheses.
The manager of an automobile dealership is
considering a new bonus plan designed to increase
sales volume. Currently, the mean sales volume is 14
automobiles per month. The manager wants to
conduct a research study to see whether the new
bonus plan decreases sales volume.Define the null and
the alternative hypotheses.
The manager of an automobile dealership is
considering a new bonus plan designed to increase
sales volume. Currently, the mean sales volume is 14
automobiles per month. The manager wants to
conduct a research study to see whether the new
bonus plan changes sales volume. Define the null and
the alternative hypotheses.