Quadro Corporation has two supermarket stores in a city. The company’s quality control department wanted to check if the customers are equally satisfied with the service provided at these two stores....

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Answer To: Quadro Corporation has two supermarket stores in a city. The company’s quality control department...

David answered on Dec 25 2021
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A 98% CI for µ1 − µ2 using equal variance as-
sumption

We want to construct confidence interval of mean difference for independent
samples from data:
sample 1 sample 2
x1 = 7.6 x2 = 8.1
s1 = 0.75 s2 = 0.59
n1 = 380 n2 = 370
Significance level = α = 1− 0.98 = 0.02
Since Variances are assumed equal, but known, we use pooled variance.
Degrees of freedom: = df = n1 + n2 − 2 = 748
The pooled estimate of Variance is:
= s2p =
(n1 − 1)s21 + (n2 − 1)s22
(n1 − 1) + (n2 − 1)
≈ 0.456733
The standard error is sx1−x2 =

s2p
n1
+
s2p
n2
≈ 0.049359
Critical Value = tα/2,df = t0.01,df=748 = 2.331 (from t-table, two-tails, d.f . = 748
)
Margin of Error = E = tα/2,df ×

s2p
n1
+
s2p
n2
= 2.331× 0.049359
E ≈ 0.115
Margin of...
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