Bank of America\'s Consumer Spending Survey collected data on annual credit card

Question

Bank of America's Consumer Spending Survey collected data on annual credit card charges in seven different categories of expenditures: transportation, groceries, dining out, household expenses, home furnishings, apparel, and entertainment (U.S. Airways Attache, December 2003). Using data from a sample of 42 credit card accounts, assume that each account was used to identify the annual credit card charges for groceries (population 1) and the annual credit card charges for dining out (population 2). Using the difference data, the sample mean difference was = $896, and the sample standard deviation was sd = $1,112.

A) What is the point estimate of the difference between the population means?
$   

B) What is the 95% confidence interval estimate of the difference between the population means (to the nearest whole number)?
(  ,   )

Explanation / Answer

a)  point estimate of the difference between the population means =896

b)std error of mean =std deviation/(n)1/2 =171.5853

for 95% CI, t=2.0195

hence confidence intrerval =sample mean -/+ t*std error =549.4764 ; 1242.5236

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