Math Problem Statement

A credit card company operates two customer service centers. Callers to the service centers dial a single​ number, and a computer program routes callers to the center having the fewest calls waiting. As part of a customer service review​ program, the credit card center would like to determine whether the average length of a call​ (not including hold​ time) is different for the two centers. The managers of the customer service centers are willing to assume that the populations of interest are normally distributed with equal variances. Suppose a random sample of phone calls to the two centers is selected and the results that were reported are shown below. Complete parts a and b. Center A Center B Sample Size 110110 140140 Sample Mean​ (seconds) 58.458.4 65.465.4 Sample St. Dev.​ (seconds) 4.84.8 3.43.4 Question content area bottom Part 1 a. Using the sample​ results, develop aa 9898​% confidence interval estimate for the difference between the two population means. Let sample 1 be the sample from Center A and let sample 2 be the sample from Center B. enter your response hereless than or equals≤left parenthesis mu 1 minus mu 2 right parenthesisμ1−μ2less than or equals≤enter your response here

Solution

To construct a 98% confidence interval estimate for the difference between the two population means (μ1μ2)(\mu_1 - \mu_2), we use the formula for a confidence interval for the difference between two means assuming equal variances.

Formula:

CI=(X1X2)±tα/2×sp2(1n1+1n2)CI = (\overline{X_1} - \overline{X_2}) \pm t_{\alpha/2} \times \sqrt{s_p^2 \left( \frac{1}{n_1} + \frac{1}{n_2} \right)}

Where:

  • X1\overline{X_1} and X2\overline{X_2} are the sample means,
  • n1n_1 and n2n_2 are the sample sizes,
  • s1s_1 and s2s_2 are the sample standard deviations,
  • sp2s_p^2 is the pooled variance,
  • tα/2t_{\alpha/2} is the critical value from the t-distribution at the 98% confidence level,
  • df=n1+n22df = n_1 + n_2 - 2 is the degrees of freedom.

Step 1: Calculate the pooled variance sp2s_p^2

sp2=(n11)s12+(n21)s22n1+n22s_p^2 = \frac{(n_1 - 1)s_1^2 + (n_2 - 1)s_2^2}{n_1 + n_2 - 2}

Given:

  • n1=110n_1 = 110, n2=140n_2 = 140
  • s1=4.8s_1 = 4.8, s2=3.4s_2 = 3.4

sp2=(1101)(4.8)2+(1401)(3.4)2110+1402s_p^2 = \frac{(110 - 1)(4.8)^2 + (140 - 1)(3.4)^2}{110 + 140 - 2} sp2=109×23.04+139×11.56248s_p^2 = \frac{109 \times 23.04 + 139 \times 11.56}{248} sp2=2501.76+1606.84248=4108.624816.56s_p^2 = \frac{2501.76 + 1606.84}{248} = \frac{4108.6}{248} \approx 16.56

Now, the pooled standard deviation is: sp=16.564.07s_p = \sqrt{16.56} \approx 4.07

Step 2: Find the critical value tα/2t_{\alpha/2}

For a 98% confidence interval with df=110+1402=248df = 110 + 140 - 2 = 248, using a t-table or calculator, the critical value tα/2t_{\alpha/2} at a 98% confidence level and 248 degrees of freedom is approximately t0.012.33t_{0.01} \approx 2.33.

Step 3: Compute the margin of error

ME=tα/2×sp×1n1+1n2ME = t_{\alpha/2} \times s_p \times \sqrt{\frac{1}{n_1} + \frac{1}{n_2}} ME=2.33×4.07×1110+1140ME = 2.33 \times 4.07 \times \sqrt{\frac{1}{110} + \frac{1}{140}} ME=2.33×4.07×0.00909+0.00714ME = 2.33 \times 4.07 \times \sqrt{0.00909 + 0.00714} ME=2.33×4.07×0.016232.33×4.07×0.12731.21ME = 2.33 \times 4.07 \times \sqrt{0.01623} \approx 2.33 \times 4.07 \times 0.1273 \approx 1.21

Step 4: Compute the confidence interval

The difference in sample means is: X1X2=58.465.4=7\overline{X_1} - \overline{X_2} = 58.4 - 65.4 = -7

Now, the 98% confidence interval is: CI=(7)±1.21CI = (-7) \pm 1.21 CI=[8.21,5.79]CI = [-8.21, -5.79]

Conclusion:

The 98% confidence interval for the difference between the two population means is: 8.21μ1μ25.79-8.21 \leq \mu_1 - \mu_2 \leq -5.79

This suggests that the average call length in Center A is significantly shorter than in Center B at the 98% confidence level.


Would you like further details or have any questions about this process? Here are five related questions for further exploration:

  1. How would the confidence interval change if the sample sizes were smaller?
  2. What happens to the confidence interval if the assumption of equal variances is violated?
  3. How does increasing the confidence level affect the width of the confidence interval?
  4. How would you interpret a confidence interval that contains zero?
  5. What is the impact of larger standard deviations on the confidence interval?

Tip: The margin of error increases as the confidence level increases, meaning a wider interval gives more assurance but less precision.

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Math Problem Analysis

Mathematical Concepts

Inferential Statistics
Confidence Intervals
Hypothesis Testing
T-distribution

Formulas

CI = (X̄1 - X̄2) ± t(α/2) * √(sp² * (1/n1 + 1/n2))
sp² = [(n1 - 1) * s1² + (n2 - 1) * s2²] / (n1 + n2 - 2)

Theorems

Central Limit Theorem
Pooled Variance

Suitable Grade Level

Undergraduate (Statistics)