# Question

A study was made to compare the costs of supporting a family of four Americans for a year in different foreign cities. The lifestyle of living in the United States on an annual income of $75,000 was the standard against which living in foreign cities was compared. A comparable living standard in Toronto and Mexico City was attained for about $64,000.Suppose an executive wants to determine whether there is any difference in the average annual cost of supporting her family of four in the manner to which they are accustomed between Toronto and Mexico City. She uses the following data, randomly gathered from 11 families in each city, and an alpha of .01 to test this difference. She assumes the annual cost is normally distributed and the population variances are equal. What does the executive find?

Toronto ... Mexico City

$69,000 ..... $65,000

64,500 ..... 64,000

67,500 ..... 66,000

64,500 ..... 64,900

66,700 ..... 62,000

68,000 ..... 60,500

65,000 ..... 62,500

69,000 ..... 63,000

71,000 ..... 64,500

68,500 ..... 63,500

67,500 ..... 62,400

Use the data from the previous table to construct a 95% confidence interval to estimate the difference in average annual costs between the two cities.

Toronto ... Mexico City

$69,000 ..... $65,000

64,500 ..... 64,000

67,500 ..... 66,000

64,500 ..... 64,900

66,700 ..... 62,000

68,000 ..... 60,500

65,000 ..... 62,500

69,000 ..... 63,000

71,000 ..... 64,500

68,500 ..... 63,500

67,500 ..... 62,400

Use the data from the previous table to construct a 95% confidence interval to estimate the difference in average annual costs between the two cities.

## Answer to relevant Questions

Some studies have shown that in the United States, men spend more than women buying gifts and cards on Valentine’s Day. Suppose a researcher wants to test this hypothesis by randomly sampling 9 men and 10 women with ...Because of uncertainty in real estate markets, many homeowners are considering remodeling and constructing additions rather than selling. Probably the most expensive room in the house to remodel is the kitchen, with an ...In each of the following cases, calculate a confidence interval to estimate p1 - p2.a. n1 = 85, n2 = 90, p̂1 = .75, p̂2 = .67, level of confidence = 90%b. n1 = 1100, n2 = 1300, p̂1 = .19, p̂2 = .17, level of confidence = ...Test the following hypotheses by using the given sample information and α = .05. Assume the populations are normally distributed.H0: σ21 = σ22 .......Ha: σ21 ≠ σ22n1 = 5, ....... n2 = 19, .......s1 = 4.68, .......s2 = ...The following data have been gathered from two related samples. The differences are assumed to be normally distributed in the population. Use these data and alpha of .01 to test the followinghypotheses.Post your question

0