A survey was done with the hope of comparing salaries of

Chapter , Problem 5.67

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A survey was done with the hope of comparing salaries of chemical plant managers employed in two areas of the country, the northern and west central regions. An independent random sample of 300 plant managers was selected from each of the two regions. These managers were asked their annual salaries. The results are as follows North West Central x1 = $102,300 x2 = $98,500 s1 = $5700 s2 = $3800 (a) Construct a 99% confidence interval for 1 2, the difference in the mean salaries. (b) What assumption did you make in (a) about the distribution of annual salaries for the two regions? Is the assumption of normality necessary? Why or why not? (c) What assumption did you make about the two variances? Is the assumption of equality of variances reasonable? Explain!

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