STDM PRESENTATION

By-
Vishwajeet Mohanty
Shivam Goyal
Vignesh
Aanchal Sharma
Surbhi Baheti
INTERFERENCE ABOUT THE DIFFERENCE
BETWEEN TWO POPULATION MEANS:
1 AND 2 KNOWN
Gasoline prices reached record high levels in 16 states
during 2003. Two of the affected states were California
and Florida. The American automobile Association
reported a sample mean price of $2.04 per gallon in
California and a sample mean price of $1.72 per gallon
in Florida. Use a sample size of 40 for California and 35
for Florida. Assume a population standard deviation of
0.10 for California and 0.08 for Florida.
DATA AS PER THE SITUATION
California Florida
x 2.04 1072
n 40 35
0.10 0.08
POINT ESTIMATOR
The point estimator of the difference between the two
population means is the difference between the two
sample means.
Point Estimator is given by: x1-x2
Point estimate
Xc Xf = 2.04 - 1.72 = 0.32
MARGIN OF ERROR
The point estimator has a standard error of
that describes the variation in the sampling
distribution of the estimator, which is given by:
FORMULA
The Margin of Error is given by multiplying the
standard error by za/2( which is calculated
depending on the confidence interval and
using the chart of probabilities for the
standard normal distribution)





INTERVAL ESTIMATE

Point estimate margin of error
FORMULA
0.32 0.0407
So, interval estimate is from 0.28 to 0.36