If the point estimate in a paired difference estimation example does not fall in the resulting confidence interval,the decision maker can conclude that the two populations likely have different means.

Question

Quizplus · Accepted Answer

This statement is incorrect. The decision maker cannot conclude that the two populations have different means solely based on the point estimate falling outside the confidence interval. The confidence interval only provides a range of values where the true population mean difference is likely to fall with a certain level of confidence. It is possible for the true population mean difference to be different from the point estimate and still fall within the confidence interval. To make conclusions about the difference in population means, additional information and analysis may be necessary.

If the Point Estimate in a Paired Difference Estimation Example