Bonnie works as insurance analyst. She collected data for two independent groups of car policies, each having n1 = n2 = n = 16 observations. She assumed individual records were independent normally distributed, while population variances for groups I and II were known as (1) 2 = 36 and (2) 2 = 64 Targeted parameter was (1 2), or difference between two population means.

Sample summaries were found as follows: Means (Xbar)1 = 105 and (Xbar)2 = 111

Sample Variances (s1)squared = 10 and (s2)squared = 90 1.

At significance level = 0.01, do you have enough evidence that 1 < 2? Show test statistic, critical value, rejection rule, and then justify your decision, that is whether you have or do not have evidence to reject the null hypothesis in favor of alternative. 2. Estimate the difference between two population means, 1 2 with confidence C = 0.95.

Show critical value, margin of error and evaluate confidence limits