46. Happy customers As the Hispanic population in the United States has grown, businesses have tried to understand what Hispanics like. One study inter-viewed a random sample of customers leaving a bank. Customers were classified as Hispanic if they preferred to be interviewed in Spanish or as Anglo if they preferred English. Each customer rated the importance
of several aspects of bank service on a 10-point scale. Here are summary results for the importance of “reliability” (the accuracy of account records and so on):

(a) The distribution of reliability ratings in each group is not Normal. A graph of the data reveals no outliers. The use of two-sample t procedures is
justified. Why?
(b) Construct and interpret a 95% confidence interval for the difference between the mean ratings of the importance of reliability for Anglo and
Hispanic bank customers.
(c) Interpret the 95% confidence level in the context of this study.

Short Answer

Expert verified

(a) The distribution is about normal because the sample sizes (92/86)are at least 30.

(b) The mean difference in ratings has a 95%of probability is between 0.2264and 0.6936.

(c) The confidence interval level shows that on an average 95%of the samples have confidence interval that are containing the mean difference of the ratings of the reliability for Anglo and Hispanic bank customers

Step by step solution

01

Part (a) Step 1: Given information

The summary results for the importance of “reliability” is:

Group
n
x¯
sx
Anglo
92
6.37
0.60
Hispanic
86
5.91
0.93
02

Part (a) Step 2: Explanation

Let, assume the sample sizes are 92and 86, which are both greater than the required sample size of 30, implying that the distribution is normally distributed..

Therefore, the distribution is about normal because the sample sizes(92/86) are at least 30.
At least 30 in sample size is required.

03

Part (b) Step 3: Given information

A 95%confidence interval for the difference between the mean ratings of the importance of reliability for Anglo and Hispanic bank customers.

04

Part (b) Step 4: Explanation

Using a Ti-83 calculator, the 95%confidence interval for the difference between the mean wages of female and male university students can be determined as follows:

The confidence interval thus becomes(0.2264,0.6936)

Therefore, the mean difference in ratings has a 95%of probability is between 0.2264and 0.6936.

05

Part (c) Step 5: Given information

To interpret the 95%confidence level in the context of this study.

06

Part (c) Step 6: Explanation

Since, the 95%confidence interval means that 95% of all available samples will have a confidence interval that includes the genuine population mean difference between the mean ratings of the significance of reliability for Anglo and Hispanic bank customers.

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Most popular questions from this chapter

Expensive ads Consumers who think a product’s advertising is expensive often also think the product must be of high quality. Can other information undermine this effect? To find out, marketing researchers did an experiment. The subjects were 90 women from the clerical and administrative staff of a large organization. All subjects read an ad that described a fictional line of food products called “Five Chiefs.” The ad also described the major TV commercials that would soon be shown, an unusual expense for this type of product. The 45women who were randomly assigned to the control group read nothing else. The 45in the “undermine group” also read a news story headlined “No Link between Advertising Spending and New Product Quality.” All the subjects then rated the quality of Five Chefs products on a seven-point scale. The study report said, “The mean quality ratings were significantly lower in the undermine treatment (xA  4.56) than in the control treatment x¯C=5.05;t=2.64,P<0.01.

(a). Explain why the Random and Independent conditions are met in this case.

(b) The distribution of individual responses is not Normal, because there is only a seven-point scale. Why is it still proper to use a two-sample t-test?

(c) Interpret the P-value in context.

A certain candy has different wrappers for various holidays. During Holiday 1the candy wrappers are 30%silver, 30%red, and 40%pink. During Holiday 2the wrappers are 50%silver and 50%blue. Forty pieces of candy are randomly selected from the Holiday 1distribution, and 40 pieces are randomly selected from the Holiday 2 distribution. What are the expected value and standard deviation of the total number of silver wrappers?

A beef rancher randomly sampled 42cattle from her large herd to obtain a 95%confidence interval to estimate the mean weight of the cows in the herd. The interval obtained was 1010,1321. If the rancher had used a 98%confidence interval instead, the interval would have been

(a) wider and would have less precision than the original estimate.

(b) wider and would have more precision than the original estimate.

(c) wider and would have the same precision as the original estimate.

(d) narrower and would have less precision than the original estimate.

(e) narrower and would have more precision than the original estimate.

Refer to Exercise 15.

(a) Carry out a significance test at the α=0.05level.

(b) Construct and interpret a 95%confidence interval for the difference between the population proportions. Explain how the confidence interval is consistent with the results of the test in part (a).

Based on your answer to Question 3, would you be surprised if the difference in the proportion of red crackers in the two samples was p1^-p^2=-0.02? Explain.

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