Question

Two online retailers offer a particular style of webcam for sale. The prices of these cameras vary day by day. Consider two groups: Group #1 consists of consumers who purchased a camera from retailer #1 during the past three months and Group #2 consistes of consumers who purchased a camera from retailer #2 during the same period of time. A 99% confidence interval for ?1−?2μ1−μ2, the difference in population mean sale prices, is 30 to 60 dollars.

(b) The confidence interval provides no strong evidence to support or refute the claim that, on average, students who purchased a camera from retailer #1 spent __________ dollars more than those who purchased a camera from retailer #2.

A. less than 65
B. at most 70
C. at least 20
D. more than 50
E. more than 25

(a) The confidence interval would tend to support the claim that, on average, consumers who purchased a camera from retailer #1 spent __________ dollars more than those who purchased a camera from retailer #2.

A. at most 40
B. more than 65
C. at least 25
D. at least 32
E. less than 20

Answer 1

Solution:-

(a) (C) The confidence interval would tend to support the claim that, on average, consumers who purchased a camera from retailer #1 spent at-least 25 dollars more than those who purchased a camera from retailer #2.

Because the confidence interval contains all the values greater than 25

(b) (D) The confidence interval provides no strong evidence to support or refute the claim that, on average, students who purchased a camera from retailer #1 spent more than 50 dollars more than those who purchased a camera from retailer #2.

Because the confidence interval contains 50 in the confidence interval.