3. A real estate agent wishes to determine whether tax...

3. A real estate agent wishes to determine whether tax assessors and real estate appraisers agree on the values of homes. A random sample of the two groups appraised 10 homes. The data are shown here. Is there a significant difference in the values of the homes for each group? Let ? = 0.05. Find the 95% confidence interval for the difference of the means. Real estate appraisers ?1 = $83,256 s1 = $3256 n1 = 10 Tax assessors ?2 = $88,354 s2 = $2341 n2 = 10

Transcript

00:01 Hi, i'm david and i'm here to help you answer your question.

00:03 Now let me bring up your question here.

00:06 In this question we are going to discuss about the covenant interval for the difference of the mean.

00:13 The formula will be for the mu 1 minus the mu 2, x bar 1 minus the x bar 2 plus and minus the t m minus 1 degree of the futen 4 over 2, times the sp and then times on the square root of the 1 over n1 plus 1 over n2 where we have the sb it will equal to the square root of the n1 minus 1 times on the s 1 2 plus n2 minus 1 times on the s 2 square divided by the n1 plus n2 minus 2 now we are given the data for the xp x2 and 1 n2 and s 1 and s 2 so the first thing we need to compute it will be the sp so we have the square root of the n1 equal to n2 so we just put them into the common factor 10 minus 1 will be the 9 and then we have the 32 56 square plus 23 41 square divided by the 10 plus 10 minus 2 so if we compute this one we have the 9 times 32 56 square plus 2341 square and then dividing by the 18 taking the square root it will equal to the 2 835 .65 and we see in the formula we have given the x bar 1x bar 2 we found the xb and when i enter already so the last volume we need to find will be the t nm minus 1 degree with them and found over 2 so this one will be not nm minus 1 so it will be the n n1 plus n2 minus 2 so therefore this one will be the n1 plus n2 minus 2 and 4 over 2 so n1 plus and 2 minus 2 equal to the 18 and far here and the 95 % confidence and 4 equal to the 5 % divided by 2 equal to the 2 .5 % which is equal to the 0 .025.

02:35 To find this value i need to bring up the t table.

02:39 So let me combine the t table and then i will put it down here.

02:51 Now from the table we just need to focus on the 18 degree of freedom...

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