The average income of 12 families who reside in a large metropolitan East Coast city is $6.74, with a standard deviation of $1.20. The average income of 15 families who reside in a rural area of the Midwest is $5.62, with a standard deviation of $0.64. (i) At a = 0.05, Can it be concluded that the families who live in the cities have a higher income than those of live in the rural areas? (ii) Find a 95% confidence interval for difference between two means.
Continuous Probability Distributions
Probability distributions are of two types, which are continuous probability distributions and discrete probability distributions. A continuous probability distribution contains an infinite number of values. For example, if time is infinite: you could count from 0 to a trillion seconds, billion seconds, so on indefinitely. A discrete probability distribution consists of only a countable set of possible values.
Normal Distribution
Suppose we had to design a bathroom weighing scale, how would we decide what should be the range of the weighing machine? Would we take the highest recorded human weight in history and use that as the upper limit for our weighing scale? This may not be a great idea as the sensitivity of the scale would get reduced if the range is too large. At the same time, if we keep the upper limit too low, it may not be usable for a large percentage of the population!
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The average income of 12 families who reside in a large metropolitan East Coast city is $6.74, with a standard deviation of $1.20. The average income of 15 families who reside in a rural area of the Midwest is $5.62, with a standard deviation of $0.64.
(i) At a = 0.05, Can it be concluded that the families who live in the cities have a higher income than those of live in the rural areas?
(ii) Find a 95% confidence interval for difference between two means.
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