11 Estimation: comparing two populations

Note:

(i) If the two population X 1 and X 2 are normal, then ( X 1  X 2 ) is also normal.

(ii) If the two population X 1 and X 2 are not normal, but if we have n1 ≥ 30 and n2 ≥ 30, then
using CLT, ( X 1  X 2 ) to distributed as Normal.

(iii) If (i) or (ii) above not available, we assume both populations X 1 and X 2 as normally dis-
tributed and proceed.

(iv) If is given (known) use z and if is not given (unknown) replace by s and use t dis-
tribution with (n-1) degrees of freedom

11.1 95% CI for ( 1  2 )

2 2
802 90 2
( X1  X 2 )  z /2
1
 2
 (510  480)  1.96 
n1 n2 100 200

= 30 ± 20.04
LCL = 9.96, UCL = 50.04

11.2 90% CI for ( 1  2 )

2 2
110 250
( X1  X 2 )  z /2
1
 2
 (45  80)  1.645 
n1 n2 25 40

= –35  ± 5.37
LCL = –40.37, UCL = –29.63

11.3 a 99% CI for ( 1  2 )

2 2
402 502
( X1  X 2 )  z /2  1
 (175  150)  2.575
2

n1 n2 50 50

= 25 ± 23.33
LCL = 1.67, UCL = 48.33

b 95% CI for ( 1  2 )

2 2
40 2 50 2
( X1  X 2 )  z /2
1
 2
 (175  150)  1.96 
n1 n2 50 50

= 25 ± 17.75

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 LCL = 7.25, UCL = 42.75

c 90% CI for ( 1  2 )

2 2
40 2 50 2
( X1  X 2 )  z /2
1
 2
 (175  150)  1.645 
n1 n2 50 50

= 25 ± 14.89
LCL = 10.10, UCL = 39.89

11.4 95% CI for ( 1  2 )

2 2
52 5 2
( X1  X 2 )  z /2
1
 2
 (12.5  11.3)  1.96 
n1 n2 25 35

= 1.2 ± 2.57
LCL = –1.37, UCL = 3.77

11.5 90% CI for ( 1  2 )

2 2
35 000 42 000
( X1  X 2 )  z /2
1
 2
 (1150  1300)  1.645 
n1 n2 200 200

= –150 ± 32.27
LCL = –182.27, UCL = –117.73

11.6 95% CI for ( 1  2 )

2 2
62 5.4 2
( X1  X 2 )  z /2
1
 2
 (22.30  23.70)  1.96 
n1 n2 50 50

= –1.20 ± 2.24
LCL = –3.44, UCL = 1.04

11.7 a 99% CI for ( 1  2 )

2 2
5000 2 5000 2
( X1  X 2 )  z /2
1
 2
 (63000  67000)  2.575 
n1 n2 100 75

= –4000 ± 47.34
LCL = –4047.34, UCL = –3952.66

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 (2.575) 2 (5000 2  50002 )
b n1  n2   331.53  332
(1000) 2

11.8 B = 10, z /2  z0.005 2.575

range 400
1    100 (for males)
4 4
range 200
2    50 (for females)
4 4
2
 2.575 100 2  502 
 n1  n2   
 10 
 828.83  829

11.9 99% CI for ( 1  2 )

 
 
 
 2 2 2 
  s1  s2  
  n1 n2  
d. f .   2 2 
   s12   s22   
      
   n1    n2   
  n1  1 n2  1  
 
   
 

 
 
 
 2 2 2 
  11.8  28.6  
  42 34  
  2 2  42.08
   11.8   28.6   
2 2

   42   34   
     
  41 33  
  
   

 s2 s2  11.82 28.62
( X 1  X 2 )  t0.005,42 , d . f  1  2   (115.6  133.0)  2.71 
 n1 n2  42 34

= –17.4 ± 14.12
LCL = –31.52, UCL = –3.28

11.10 a 90% CI for ( 1  2 )

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 ( n1  1) s12  (n2  1) s22
s 2p 
n1  n2  2

17  0.79 2  23  0.852

18  24  2
 0.68

1 1  1 1 
( X 1  X 2 )  t0.05,40 , n1  n2  2 s 2p     (7.63  6.19)  1.684 0.68   
 n1 n2   18 24 

= 1.44 ± 0.43
LCL = 1.01, UCL = 1.87

b We assume that the two populations are normal and that 1

2
 2
2 .

This is supported by the data as s1  0.79  s2  0.85 .

11.11 90% CI for ( 1  2 )

X 1  23.4 X 2  33.71 n1  5

s12  55.80 s22  45.24 n2  7

Assuming unequal variances,

2
 55.80 45.24 
  
 5 7 
2 2
d.f. =  55.80   45.24 
 5   7 
4 6
 8.15  8

 s12 s22  55.80 45.24

( X 1  X 2 )  t0.05,8 , d . f .     (23.40  33.71)  1.86 
 n1 n2  5 7

= –10.31 ± 7.81
LCL = –18.12, UCL = –2.51
2
 55.80 45.24 
  
 5 7 
d.f. = 2 2
 55.80   45.24 
   
 5   7 
4 6

=8

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 2 2
11.12 90% CI for ( 1  2 ) . Since s (  0.18)  s (  0.14),
1 2
we can assume that 1

2
.

(15  1)(0.18) 2  (15  1)(0.14) 2

Pooled variance s 2   0.026
(15  1)  (15  1)

1 1  1 1
a n  n  15 .
1 2
( X 1  X 2 )  t0.05,28 s 2p     (1.48  1.23)  1.701 0.026   
 n1 n2   15 15 

   = 0.25 ± 0.100

LCL = 0.15, UCL = 0.35

 s 2p s 2p  0.026 0.026
b n  n  200 .
1 2
( X1  X 2 )  z 2     (1.48  1.23)  1.645 
 n1 n2  200 200

= 0.25 ± 0.027
LCL = 0.22, UCL = 0.28

11.13 a 95% CI for ( 1  2 ) . Equal-variances estimator (Since s1  129, s2  131  s1  s2 )

(25  1)(129) 2  (25  1)(131) 2

S p2   16901
(25  1)  (25  1)

1 1 
( X 1  X 2 )  t0.025,48 s 2p   
 n1 n2 
 (25  1)129 2  (25  1)1312   1 1 
 (524 – 469)  2.011    
 25  25  2   25 25 
 55  73.93

LCL = –18.93, UCL = 128.93

b Equal-variances estimator. (Since s1  255, s2  260  s1  s2 )

(25  1)(255) 2  (25  1)(260) 2

S p2   66312.5
(25  1)  (25  1)

1 1 
( X 1  X 2 )  t0.025,48 s 2p   
 n1 n2 
 (25  1)255 2  (25  1)260 2  1 1 
 (524 – 469)  2.011    
 25  25  2   25 25 
 55  146.45

LCL = –91.45, UCL = 201.45

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 c When the variances increase the interval widens.

d Equal-variances estimator (Since s1  129, s2  131  s1  s2 )

(100  1)(129) 2  (100  1)(131) 2

S p2   16901
(100  1)  (100  1)

1 1 
( X 1  X 2 )  t0.025,198 s 2p   
 n1 n2 
 (100  1)129 2  (100  1)1312  1 1 
 (524 – 469)  1.972    
 100  100  2   100 100 
 55  36.26

LCL = 18.74, UCL = 91.26

e When sample size increase the interval narrows.

11.14 a 90% CI for ( 1  2 ) . Unequal-variances estimator

( s12 / n1  s22 / n2 ) 2
  64.8 (rounded to 65, approximated by  65)
( s12 / n1 )2 ( s22 / n2 ) 2

n1  1 n2  1

 s2 s2   182 72 
( X 1  X 2 )  t0.05,65  1  2   (63  60)  1.669     3  4.59
 n1 n2   50 45 

LCL = –1.59, UCL = 7.59

b Unequal-variances estimator

( s12 / n1  s22 / n2 ) 2
  63.1 (rounded to 63, approximated by  65)
( s12 / n1 ) 2 ( s22 / n2 ) 2

n1  1 n2  1

 s2 s2   412 152 
( X 1  X 2 )  t0.05,65  1  2   (63  60)  1.669     3  10.37
 n1 n2   50 45 

LCL = –7.37, UCL = 13.37

c When standard deviations increase the interval widens.
d Unequal-variances estimator

( s12 / n1  s22 / n2 ) 2
  131 (approximated by  130)
( s12 / n1 ) 2 ( s22 / n2 ) 2

n1  1 n2  1

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  s12 s22   182 72 
( X 1  X 2 )  t0.05,130     (63  60)  1.657     3  3.22
 n1 n2   100 90 

LCL = –0.22, UCL = 6.22

e When the sample sizes increase the interval narrows.

11.15 95% CI for ( 1  2 ).

2
 0.61 0.77 
  
 50 50 
d. f  2 2  96.7  97
 0.61    0.77 
   
 50   50 
49 49
 s12 s22  0.61 0.77
( X 1  X 2 )  t0.025,97     (5.98  4.79)  1.984 
 n1 n2  50 50

= 1.19 ± 0.33
LCL = 0.86, UCL = 1.52

11.16 99% CI for ( 1  2 ).

 12 2
 102 102
( X1  X 2 )  z /2   2
  (153  142)  2.575 
 n1 n2  14 14

= 11 ± 9.73
LCL = 1.26, UCL = 20.74

11.17 90% CI for ( 1  2 ).

2
 27 2 22 2 
  
 100 100 
d.f. = 2 2 2 2
 190.24
 27   27 
 100    100 
   
99 99

 s2 s2  27 2 222
( X 1  X 2 )  t0.05,190  1  2   (193  184)  1.653 
 n1 n2  100 100

= 9 ± 5.76
LCL = 3.24, UCL = 14.76

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11.18 a Assuming equal variances. 95% CI for ( 1  2 ).

(15  1)(4.23) 2  (25  1)(3.35) 2

S p2   13.68
(15  1)  (25  1)

1 1  1 1 
( X1  X 2 )  t /2 , n1  n2  2 s 2p     (36.93  31.36)  2.021 13.68   
 n1 n2   15 25 

= 5.57 ± 2.44
= (3.13, 8.01)
LCL = 3.13, UCL = 8.02
Note: If we assume unequal variances, then d.f = 24.49 and the CI will be 5.57 ± 2.65.
LCL = 2.93, UCL = 8.22
2
b Both variables are approximately normally distributed and 1 appears to be equal to
2
2 ( s1  4.23 and s2  3.35 )

11.19 a 95% CI for ( 1  2 ).

2 2
 s12 s 22  2
 9.51 25.16 
2

    100  140 
 n1 n2   
d.f. = 2 2   190.07
 9.51   25.16  2
2 2 2
 s12   s22 

       
 n1   n2   100   140 
n1  1 n2  1 99 139

s s  9.57 2 25.16 2
( X 1  X 2 )  t0.025,190 s  1  2   (19.07  16.38)  1.973 
 n1 n2  100 140

= 2.69 ± 4.60
= 7.29
LCL = –1.91, UCL = 7.29

b The variable should be normal and 1

2
 2
2 .

c The conditions appear to be satisfied, both variables are normal.

11.20 a 95% CI for ( 1  2 ) . Assume unequal variance. d.f = 449.31  450.

 s2 s2  30.77 2 43.32 2
( X 1  X 2 )  t0.025,450  1  2   (58.99  52.96)  1.96 
 n1 n2  250 250

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 = 6.03 ± 6.6
LCL = –0.58, UCL = 12.63
b The listening times for the first age group appears to be normal and for the second age
group do not appear to be normally distributed.

11.21 a Since, s1  2.87, s2  2.90, assume 2

1  2
2 . 95% CI for ( 1  2 )

(100  1)(2.87) 2  (100  1)(2.91) 2

s 2p   8.304
(100  1)  (100  1)
s p  2.88

1 1  1 1 
( X 1  X 2 )  t0.025,198 s 2p     (10.23  9.66)  1.972(2.88)   
 n1 n2   100 100 

= 0.57 ± 0.80
LCL = –0.23, UCL = 1.38
b Both variables are approximately normally distributed and
1  2 ( s1  2.87 and s2  2.90)
2 2

11.22 a Assume unequal variance. 95% CI for ( 1  2 ) . d.f = 31.63  30.

 s12 s22  24.022 9.04 2

( X 1  X 2 )  t0.025,30     (74.71  52.5)  2.042 
 n1 n2  24 16

= 22.21 ± 11.01
LCL = 11.2, UCL = 33.2

b The times should be normally distributed and 2

1  2
2 .

c The times are approximately normally distributed and

1  2 ( s1  24.02 and s2  9.04) .
2 2

11.23 Assume unequal variance. 95% CI for ( 1  2 ) . d.f = 276.51.

 s12 s22  1.392 3.092

( X1  X 2 )  t /2 , d . f .     (5.02  7.80)  1.96 
 n1 n2  200 200

= –2.78 ± 0.47
= (–3.25, – 2.31)
We estimate that unsuccessful companies waste on average between 2.31 and 3.26
hours more than successful ones.

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11.24 95% CI.

 s   3.11 
X D  t0.025,4  D   3.8  2.776  
 n   5 
 D 

= 3.8 ± 3.86
LCL = –0.06, UCL = 7.66

12.25 95% CI.

 s   4 
a X D  t0.025,14  D    2.145  
 n   15 
 D 

= 2 ± 2.215
LCL = –0.22, UCL = 4.22

 s   20 
b X D  t0.025,49  D    8  2.009  
 n   50 
 D 

= –8 ± 5.68
LCL = –13.68, UCL = –2.32

 s   3.52 
11.26 X D  t0.025,7  D    4  2.015  
 n   6 
 D 

= –4 ± 2.90
LCL = –6.90, UCL = –1.10
11.27 99% CI.

 sD   2.47 
XD  t    23.32  3.499  
/2
 n   8 
 D 

= 23.32 ± 3.06
LCL = 20.26, UCL = 26.38
11.28 a 90% CI.

 s   4.42 
X D  t0.05,9  D    2.3  1.833  
 n   10 
 D 

= –2.3 ± 2.56

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 LCL = –4.86, UCL = 0.26
b Take a random sample of 10 female students and an unrelated sample of 10 male stu-
dents. The matched pairs design is better because it reduces the variability among the
students.
11.29 a 95% CI.

sD 3.02
X D  t 0.025,11   1.00  2.201   1.00  1.92; LCL =  2.92, UCL = 0.92
nD 12

b Dependent samples and the differences are required to be normally distributed

c No, the histogram is bimodal.
d The data are experimental.
e The experimental design should be independent samples.
11.30 a 90% CI.

 s   30.63 
X D  t0.05,39  D   19.75  1.6849    19.75  8.16
 n   40 
 D 

LCL = 11.59, UCL = 27.91

11.31 a 95% CI.

sD 2.22
X D  t0.025,49  1.16  2.009  1.16  0.63
nD 50

LCL = –1.79, UCL = –0.53

11.32 90% CI.
   
  P1 q1 P 2 q 2 (0.56)(0.44) (0.51)(0.49)
( P1  P 2 )  z /2   (0.56  0.51)  1.645 
n1 n2 500 500

= 0.05 ± 0.052
LCL = –0.002, UCL = 0.102

11.33 95% CI.

   
  P1 q1 P 2 q 2 (0.25)(0.75) (0.35)(0.65)
( P1  P 2 )  z /2   (0.25  0.35)  1.96 
n1 n2 200 100

= – 0.1 ± 0.11

Business Statistics: Australia New Zealand (7th edition) – Solutions Manual

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