The U.S. Department of Labor collects data on unemployment insurance payments.
Suppose that during 2009 a random sample of 70 unemployed people in Alabama
received an average weekly benefit of \(\$ 199.65\), whereas a random sample of
65 unemployed people in Mississippi received an average weekly benefit of \(\$
187.93\). Assume that the population standard deviations of all weekly
unemployment benefits in Alabama and Mississippi are \(\$ 32.48\) and \(\$
26.15\), respectively.
a. Let \(\mu_{1}\) and \(\mu_{2}\) be the means of all weekly unemployment
benefits in Alabama and Mississippi paid during 2009 , respectively. What is
the point estimate of \(\mu_{1}-\mu_{2}\) ?
b. Construct a \(96 \%\) confidence interval for \(\mu_{1}-\mu_{2}\).
c. Using the \(4 \%\) significance level, can you conclude that the means of all
weekly unemployment benefits in Alabama and Mississippi paid during 2009 are
different? Use both approaches to make this test.