In order to determine whether or not there is a significant difference between the mean hourly wages paid by two companies (of the same industry), the following data have been accumulated. A point estimate for the difference between the two population means is
A) 20.
B) .50.
C) .25.
D) 1.00.

Question

In order to determine whether or not there is a significant difference between the mean hourly wages paid by two companies (of the same industry), the following data have been accumulated.  ​ A point estimate for the difference between the two population means is
A) 20. 
B) .50. 
C) .25. 
D) 1.00.

Quizplus · Accepted Answer

The point estimate for the difference between the two population means is calculated by taking the difference between the sample means. In this case, the sample mean for Company A is $10.50 and the sample mean for Company B is $10.00. Therefore, the point estimate for the difference between the two population means is $10.50 - $10.00 = $0.50.

In Order to Determine Whether or Not There Is a Significant