Question

# Using techniques from an earlier section, we can find a confidence interval for μd. Consider a...

Using techniques from an earlier section, we can find a confidence interval for μd. Consider a random sample of n matched data pairs A, B. Let d = BA be a random variable representing the difference between the values in a matched data pair. Compute the sample mean

d

of the differences and the sample standard deviation sd. If d has a normal distribution or is mound-shaped, or if n ≥ 30, then a confidence interval for μd is as follows.

dE < μd < d + E

where E = tc

sd
 n

c = confidence level (0 < c < 1)

tc = critical value for confidence level c and d.f. = n − 1

 B: Percent increase for company 16 6 14 18 6 4 21 37 A: Percent increase for CEO 25 14 23 14 −4 19 15 30

(a) Using the data above, find a 95% confidence interval for the mean difference between percentage increase in company revenue and percentage increase in CEO salary. (Round your answers to two decimal places.)

 lower limit upper limit

a)

 for 95% CI; and 7 degree of freedom, value of t= 2.365 therefore confidence interval=sample mean -/+ t*std error margin of errror          =t*std error= 7.917 lower confidence limit                     = -9.67 upper confidence limit                    = 6.17

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