Practice Create Confidence Intervals

For each question in the previous practice: (a) identify the significance level, (b) identify the type of test, (c) create an appropriate confidence interval estimate, and (d) interpret the interval in context of the scenario.

A claim in a recent news segment stated that couples who live together are spending the same amount of money annually on food for the home. To test this claim, a research study collected the annual amount spent on food for the home from 10 couples, found in Table 7. Use a 0.05 significance level and the sample data to test the claim that the mean amount spent annually by each partner is the same. Table 7 Amount in $ Spent Annually on Food for the Home Partner 1 2,121 1,989 2,010 3,120 2,428 2,680 1,889 2,034 3,002 1,799 Partner 2 1,789 1,221 1,920 2,170 2,171 1,890 1,005 1,899 2,501 1,990 Use a 0.01 significance level to test the claim that the mean amount, in dollars, spent by an American on groceries for food is greater in 2017 than it was in 2007. A simple random sample 10 MAT 052/152 SUPPLEMENTAL MANUAL from 2007 of 1,235 Americans found a mean amount of $2,485 spent annually on groceries for food and a standard deviation of $88. A simple random sample from 2017 of 2,310 Americans found a mean amount of $4,300 spent annually on groceries for food and a standard deviation of $103