b Use the following data to compute a 95 upper confidence bo

(b) Use the following data to compute a 95% upper confidence bound for mu1 - mu2: m = 35, bar x = 43,600, s1 = 2100, n = 35, bar y = 36,800, and s2 = 1800. (Round your answer to two decimal places.)

Solution

Given a=1-0.95=0.05, Z(0.05) = 1.645 (from standard normal table)

So the upper confidence bound is

(xbar1-xbar2) + Z*sqrt(s1^2/n1+s2^2/n2)

=(43600-36800)+1.645*sqrt(2100^2/35+1800^2/35)

=7569.06