Question
A computer systems retailer wishes to compare the average monthly sales of its servers with Intel andAMD multi-core processors. To do so, they record the
A computer systems retailer wishes to compare the average monthly sales of its servers with Intel andAMD multi-core processors. To do so, they record the number of sales of each server type for each of the last 12 months:
Month | Intel | AMD |
Jan | 1900 | 1860 |
Feb | 1720 | 1720 |
Mar | 1660 | 1720 |
Apr | 1700 | 1530 |
May | 1900 | 1880 |
Jun | 1860 | 1790 |
Jul | 1760 | 1740 |
Aug | 2100 | 2090 |
Sept | 2380 | 2310 |
Oct | 1920 | 1790 |
Nov | 2000 | 1790 |
Dec | 1800 | 1700 |
a) For this dataset, why should the company use a paired difference analysis instead of an independent samples analysis?
b) Compute the 95% confidence interval for the average monthly sales of each server type (1, 2).c) Compute the 95% confidence interval for the difference in monthly sales 1 2.
d) Notice that the confidence intervals in part b overlap, but the confidence interval in part c does not contain 1 2 = 0. Explain the discrepancy between these two results. Which result is a better indicator of whether or not 1 and 2 are likely to be identical?
e) Is the sample evidence sufficient to conclude whether 1 and 2 are different? To answer this question,perform a hypothesis test at = .05. You should state the alternative and null hypotheses, compare the observed t-score to the t-score threshold, estimate the p-value, and state the conclusion of the test.
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