Confidence interval for the difference between means


Discuss the below:

Q: Consider the file data on Taxes that is included in worksheet P2 on the exam template. This data represents property taxes paid by 170 residents that live in a small town. Assume this file to be the entire population. Answer the following questions:

a. A local politician in this town has stated that the average property taxes are $1800 and most people do not pay more than this amount. Conduct a test at the ? = .01 level to determine if this is true. For this test, consider a sample size of 30 households. Also, you want to have strong evidence to disclaim his hypothesis.

b. Find the probability of a Type two error when U = 2200

c. Conduct the same test as in part a, however, use sampling data by taking the fist 50 data points in the population

d. Conduct a test at the alpha = .05 level to determine if there is a difference between taxes paid in neighborhood 1 and in neighborhood 4. Use all the data points from both neighborhoods and consider this to be sample data.

e. From part d, what is the 95% confidence interval for the difference between means

Annual Real Estate Taxes Paid by Homeowners in a small town (Population Data)









Homeowner Neighborhood Tax_Paid





1 3 $1,138.92





2 2 $2,268.88





3 3 $1,712.93





4 3 $1,716.31





5 3 $1,599.98





6 4 $1,941.38





7 6 $980.24





8 5 $2,268.14





9 6 $1,868.73





10 1 $1,618.15





11 4 $1,705.31





12 1 $1,908.44





13 3 $1,145.30





14 2 $2,419.79





15 6 $1,632.89





16 6 $1,883.85





17 4 $1,800.83





18 6 $1,985.80





19 4 $1,929.04





20 4 $1,616.92





21 2 $1,925.38





22 2 $2,652.80





23 1 $2,319.15





24 6 $1,393.23





25 1 $2,616.94





26 3 $1,681.42





27 6 $952.51





28 1 $1,636.48





29 2 $2,648.90





30 1 $2,441.58





31 3 $2,078.22





32 6 $1,298.17





33 2 $2,868.10





34 4 $2,084.50





35 6 $1,653.76





36 5 $3,288.01





37 1 $1,848.47





38 3 $1,662.51





39 3 $1,449.33





40 3 $1,447.77





41 2 $2,414.60





42 3 $1,309.24





43 3 $1,519.18





44 1 $2,047.69





45 3 $1,686.12





46 4 $1,755.92





47 6 $1,781.70





48 6 $1,353.92





49 1 $1,818.35





50 1 $1,904.13





51 2 $2,816.79





52 3 $1,838.13





53 2 $2,866.46





54 1 $2,117.40





55 4 $1,960.53





56 5 $2,322.78





57 6 $1,366.77





58 4 $1,653.42





59 4 $1,667.42





60 3 $1,567.33





61 4 $1,544.65





62 5 $2,922.20





63 6 $1,574.00





64 3 $1,541.02





65 4 $1,528.53





66 6 $1,177.54





67 6 $1,723.23





68 6 $1,705.59





69 6 $1,468.23





70 6 $1,081.04





71 1 $2,136.10





72 6 $1,671.80





73 6 $867.18





74 1 $2,296.04





75 6 $1,398.27





76 3 $985.60





77 5 $3,168.90





78 6 $1,067.69





79 6 $1,230.40





80 5 $3,775.00





81 6 $2,025.42





82 6 $1,279.13





83 3 $1,459.57





84 6 $1,456.21





85 1 $1,900.65





86 6 $1,367.51





87 6 $1,554.98





88 3 $1,536.49





89 2 $2,428.34





90 6 $1,825.01





91 1 $1,596.91





92 4 $1,951.69





93 4 $1,694.57





94 4 $1,970.08





95 1 $2,265.39





96 3 $863.23





97 6 $1,229.90





98 3 $1,515.65





99 2 $2,332.28





100 5 $3,045.21





101 6 $1,190.32





102 3 $1,410.75





103 3 $1,813.82





104 2 $2,243.49





105 6 $1,280.51





106 6 $1,458.34





107 5 $3,121.92





108 2 $2,297.38





109 3 $1,538.36





110 6 $1,566.28





111 6 $1,609.09





112 3 $1,513.09





113 4 $1,673.89





114 4 $1,749.77





115 3 $1,553.90





116 5 $3,175.09





117 2 $2,514.27





118 3 $1,251.61





119 6 $1,690.06





120 3 $1,181.98





121 3 $1,175.79





122 6 $1,632.60





123 3 $1,563.36





124 3 $2,006.47





125 5 $3,000.34





126 3 $1,775.11





127 3 $1,510.54





128 5 $3,189.34





129 2 $2,396.58





130 3 $1,495.29





131 2 $2,350.90





132 4 $1,763.61





133 6 $1,094.63





134 2 $2,279.87





135 3 $1,705.94





136 4 $1,773.60





137 4 $1,830.08





138 5 $2,556.52





139 4 $1,758.91





140 3 $1,687.77





141 5 $3,056.78





142 3 $1,423.09





143 6 $2,006.56





144 3 $1,129.66





145 4 $1,808.78





146 5 $3,177.85





147 2 $2,628.84





148 6 $1,592.98





149 2 $2,309.48





150 6 $1,341.05





151 6 $1,313.94





152 6 $1,382.76





153 6 $1,786.41





154 6 $1,533.79





155 5 $2,963.82





156 1 $1,562.61





157 2 $2,420.67





158 6 $1,752.22





159 2 $2,437.49





160 6 $1,670.68





161 1 $1,730.73





162 1 $2,205.32





163 6 $937.85





164 3 $1,348.12





165 4 $1,762.19





166 3 $1,944.03





167 4 $1,759.98





168 6 $1,014.34





169 2 $2,670.30





170 6 $969.61





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Basic Statistics: Confidence interval for the difference between means
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