Question

K.Brew 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 8 sales receipts for mail-order sales results in a mean sale amount of $88.70 with a standard deviation of $26.75. A random sample of 17 sales receipts for internet sales results in a mean sale amount of $77.10 with a standard deviation of $15.75. Using this data, find the 98% 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 1 of 3 : Find the point estimate that should be used in constructing the confidence interval.

Answer 1

Find the point estimate that should be used in constructing the confidence interval.

Point estimate = 88.70 - 77.10 = 11.6