Calculate a 95 percent confidence interval for the mean


In an article in the Journal of Accounting Research, Ashton, Willingham, and Elliott studied audit delay (the length of time from a company's fiscal year-end to the date of the auditor's report) for industrial and financial companies. In the study, a random sample of 250 industrial companies yielded a mean audit delay of 68.04 days with a standard deviation of 35.72 days, while a random sample of 238 financial companies yielded a mean audit delay of 56.74 days with a standard deviation of 34.87 days. Use these sample results to do the following:

a. Calculate a 95 percent confidence interval for the mean audit delay for all industrial companies.

Note: t.025 = 1.97 when df = 249.

b. Calculate a 95 percent confidence interval for the mean audit delay for all financial companies.

Note: t.025 = 1.97 when df = 237.

c. By comparing the 95 percent confidence intervals you calculated in parts a and b, is there strong evidence that the mean audit delay for financial companies is shorter than the mean audit delay for industrial companies? Explain.

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Applied Statistics: Calculate a 95 percent confidence interval for the mean
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