Question

The USA Today reports that the average expenditure on Valentine's Day is $100.89. Do male and female consumers differ in the amounts they spend? The average expenditure in a sample survey of 50 male consumers was $135.67, and the average expenditure in a sample survey of 38 female consumers was $68.64. Based on past surveys, the standard deviation for male consumers is assumed to be $40, and the standard deviation for female consumers is assumed to be $23. What is the point estimate of the difference between the population mean expenditure for males and the population mean expenditure for females (to 2 decimals)?

Answer 1

Answer: $ 67.03

Step-by-step explanation:

Given : The average expenditure in a sample survey of 50 male consumers was $135.67, and the average expenditure in a sample survey of 38 female consumers was $68.64.

i.e. $\overline{x}_1=\ 135.67\ \ \&\ \ \overline{x}_2=\ 68.64$

The best point estimate of the difference between the two population means is given by :-

$\overline{x}_1-\overline{x}_2\\\\=135.67-68.64=67.03$

Hence, the point estimate of the difference between the population mean expenditure for males and the population mean expenditure for females : $ 67.03