Question

Question 2 (1 point) Poor millennials - Skyrocketing cost of living and crippling student debt have made it much more difficult for millennials to accumulate wealth. A random sample of 60 baby boomer households and a random sample of 76 millennial households were selected. The summary statistics are given in the table below in thousands of dollars. Population/Group Generation Mean Household wealth Standard Deviation Baby Boomers 1.1175 0.027 Millennials 0.1058 0.020 Kanye, an economics student, wants to estimate the difference between the actual mean household wealth of baby boomers and millennials. Note: Numbers are randomized in each instance of this question. Pay attention to the numbers given above. What is the upper bound for a 90% confidence interval for the difference between the population means? Your Answer: Answer Previous Page Next Page Page 2 of 19

Answer 1

Given that, For male; ny = 60,*4 = 1.1175,04 = 0.027 For Female : n2 = 76, 72 = 0.1058,02 = 0.020 a) The point estimate of the difference between the population mean expenditure for males and the population mean expenditure for females is, X1-22 = 1.1175 -0.1058 = 1.0117 => Point estimate=1.0117 b) At 90% confidence, the margin of error (ME) is, = 1.645 * 0.0272 0.0202 6076 - ME = 2* + Vnin2 +- => Margin of error (E)= 0.0069 c) The 90% confidence interval for the difference between the two population means is. (<-22)-ME <H1 - H2 < (-22) + ME 1.0117 -0.0069<H1 - Hz <1.0117+0.0069 1.0048 < Hy - H2 <1.0186 Answer: Upper bound is 1.0186