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The R & M department store as two charge plans available for its credit-account customers. The management of the store wants to collect information about each plan and to study the differences between the two plans. Of particular interest is the monthly balance carried by the customers. Random samples of 25 accounts in Plan A and 50 accounts in Plan B are selected, with the following results.
Use a level of significance of 0.01 and use statistical inference for the following questions.
a. Is there evidence of a difference between the average balances of Plan A and Plan B? You must demonstrate all students to receive full credit.
b. Determine the confidence interval for the difference between the average balances of Plan A and Plan B.
Plan A Plan B
nA = 25 nB = 50
xA(bar) = $75 xB(bar) = $110
sA = $15 sB = $14.14
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