Exhibit 10-13
In order to determine whether or not there is a significant difference between the hourly wages of two companies, the following data have been accumulated.
-Refer to Exhibit 10-13. The point estimate of the difference between the means is
A)20
B)0.8
C)0.50
D)-20

Question

Exhibit 10-13
In order to determine whether or not there is a significant difference between the hourly wages of two companies, the following data have been accumulated. 
-Refer to Exhibit 10-13. The point estimate of the difference between the means is
A)20 
B)0.8 
C)0.50 
D)-20

Quizplus · Accepted Answer

The point estimate of the difference between the means is given by the formula (x1 - x2), where x1 is the sample mean for Company A and x2 is the sample mean for Company B. From the data in the exhibit, we have x1 = 15 and x2 = 14.2. Thus, the point estimate is (15 - 14.2) = 0.8. Therefore, the best choice is B.

Exhibit 10-13 in Order to Determine Whether or Not There Is a Is