(b) Let µ1 represent the population mean profit as a percentage of stockholder equity for retail stocks, and let µ2 represent the population mean profit as a percentage of stockholder equity for utility stocks. Find a 95% confidence interval for 41 - H2. (Use 1 decimal place.) lower limit unner limit

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Hi How do you do (b)

How profitable are different sectors of the stock market? One way to answer such a question is to examine profit as a percentage of stockholder
equity. A random sample of 27 retail stocks such as Toys 'R' Us, Best Buy, and Gap was studied for x1, profit as a percentage of stockholder
equity. The result was x, = 13.8. A random sample of 33 utility (gas and electric) stocks such as Boston Edison, Wisconsin Energy, and Texas
Utilities was studied for x2, profit as a percentage of stockholder equity. The result was x, = 9.1. Assume that o, = 4.8 and o, = 2.0.
(a) Categorize the problem below according to parameter being estimated, proportion p, mean µ, difference of means µ1 - H2, or
difference of proportions p1 - p2. Then solve the problem.
O P
O H1 - H2
O P1 - P2
(b) Let uj represent the population mean profit as a percentage of stockholder equity for retail stocks, and let u, represent the population
mean profit as a percentage of stockholder equity for utility stocks. Find a 95% confidence interval for u1 - Hz. (Use 1 decimal place.)
lower limit
upper limit
Transcribed Image Text:How profitable are different sectors of the stock market? One way to answer such a question is to examine profit as a percentage of stockholder equity. A random sample of 27 retail stocks such as Toys 'R' Us, Best Buy, and Gap was studied for x1, profit as a percentage of stockholder equity. The result was x, = 13.8. A random sample of 33 utility (gas and electric) stocks such as Boston Edison, Wisconsin Energy, and Texas Utilities was studied for x2, profit as a percentage of stockholder equity. The result was x, = 9.1. Assume that o, = 4.8 and o, = 2.0. (a) Categorize the problem below according to parameter being estimated, proportion p, mean µ, difference of means µ1 - H2, or difference of proportions p1 - p2. Then solve the problem. O P O H1 - H2 O P1 - P2 (b) Let uj represent the population mean profit as a percentage of stockholder equity for retail stocks, and let u, represent the population mean profit as a percentage of stockholder equity for utility stocks. Find a 95% confidence interval for u1 - Hz. (Use 1 decimal place.) lower limit upper limit
Expert Solution
Given

x1 = 13.8
x2 = 9.1

n1 = 27
n2 = 33

s1 = 4.8
s2 = 2

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