# Question

The Bureau of Labor Statistics shows that the average insurance cost to a company per employee per hour is $1.84 for managers and $1.99 for professional specialty workers. Suppose these figures were obtained from 14 managers and 15 professional specialty workers and that their respective population standard deviations are $0.38 and $0.51.Assume that such insurance costs are normally distributed in the population.

a. Calculate a 98% confidence interval to estimate the difference in the mean hourly company expenditures for insurance for these two groups. What is the value of the point estimate?

b. Test to determine whether there is a significant difference in the hourly rates employers pay for insurance between managers and professional specialty workers. Use a 2% level of significance.

a. Calculate a 98% confidence interval to estimate the difference in the mean hourly company expenditures for insurance for these two groups. What is the value of the point estimate?

b. Test to determine whether there is a significant difference in the hourly rates employers pay for insurance between managers and professional specialty workers. Use a 2% level of significance.

## Answer to relevant Questions

A company’s auditor believes the per diem cost in Nashville, Tennessee, rose significantly between 2001 and 2011. To test this belief, the auditor samples 51 business trips from the company’s records for 2001; the sample ...a. Use the following data and α = .10 to test the stated hypotheses. Assume x is normally distributed in the populations and the variances of the populations are approximately equal.H0: µ1 - µ2 = 0 ....... Ha: µ1 - µ2 ...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 ...Eleven employees were put under the care of the company nurse because of high cholesterol readings. The nurse lectured them on the dangers of this condition and put them on a new diet. Shown are the cholesterol readings of ...A large production facility uses two machines to produce a key part for its main product. Inspectors have expressed concern about the quality of the finished product. Quality control investigation has revealed that the key ...Post your question

0