Managers of an industrial plant want to determine which of two types of fuel, gas or electric, is more cost efficient (measured in cost per unit of energy). Independent random samples were taken of plants using electricity and plants using gas. These samples consisted of 10 plants using electricity, which had a mean cost per unit of $53.50 and standard deviation of $8.19 , and 11 plants using gas, which had a mean of $55.40 and standard deviation of $8.23 . Assume that the populations of costs per unit are normally distributed for each type of fuel, and assume that the variances of these populations are equal. Construct a 95% confidence interval for the difference −μ1μ2 between the mean cost per unit for plants using electricity, μ1 , and the mean cost per unit for plants using gas, μ2 . Then find the lower limit and upper limit of the 95% confidence interval. Carry your intermediate computations to at least three decimal places. Round your responses to at least two decimal places.
Managers of an industrial plant want to determine which of two types of fuel, gas or electric, is more cost efficient (measured in cost per unit of energy). Independent random samples were taken of plants using electricity and plants using gas. These samples consisted of
plants using electricity, which had a
and standard deviation of
, and
plants using gas, which had a mean of
and standard deviation of
. Assume that the populations of costs per unit are
confidence interval for the difference
between the mean cost per unit for plants using electricity,
, and the mean cost per unit for plants using gas,
. Then find the lower limit and upper limit of the
confidence interval.
Carry your intermediate computations to at least three decimal places. Round your responses to at least two decimal places.
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