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The user has provided multiple data and analysis scenarios related to transportation miles, calling rates, and salary comparisons across U.S. cities. The core assignment focuses on statistical analysis involving confidence intervals, hypothesis testing, and comparison of means among different populations. The specific tasks include calculating point estimates, constructing confidence intervals for differences between population means, conducting significance tests for equality of means, and identifying the location with the highest salaries based on sample data.

For clarity and to address each part systematically: first, compute the point estimate of the difference in mean miles traveled between Buffalo and Boston; second, construct a 95% confidence interval for this difference; third, test whether the two cities have the same population mean miles traveled using an appropriate hypothesis test at a predetermined significance level; fourth, compute a 95% confidence interval for the difference in calling rates between Sprint and WorldCom; and finally, perform an analysis to determine if there are significant differences in the average annual technology salaries among New York City, Boston, and Silicon Valley, including calculating the p-value and identifying the highest salary.

Sample Paper For Above instruction

Introduction

Statistics is a fundamental tool in analyzing data, providing insights into population parameters through sample data. This paper applies statistical methods to real-world scenarios involving transportation distances, telephone calling rates, and salary comparisons across major U.S. cities. The objectives are to estimate differences between population means with confidence intervals, perform hypothesis testing to assess equality of means, and determine the city with the highest average salary based on sample data. These analyses enable informed decision-making in urban planning, telecommunications, and economic policy.

Point Estimate of the Difference in Mean Miles Traveled

Given the data, Buffalo residents have a sample mean travel distance of 22.5 miles with a standard deviation of 8.4 miles, based on 50 residents. Boston residents have a mean of 18.6 miles, standard deviation 7.4 miles, based on 40 residents. The point estimate for the difference in population means is the difference in sample means:

Difference = 22.5 - 18.6 = 3.9 miles

This estimate suggests that, on average, Buffalo residents travel approximately 3.9 miles more per day than Boston residents.

Constructing the 95% Confidence Interval for the Difference of Means

To build the confidence interval, we employ the two-sample t-interval formula assuming unequal variances (Welch’s t-test). The standard error (SE) of the difference is calculated as:

SE = √(s₁² / n₁ + s₂² / n₂) = √(8.4² / 50 + 7.4² / 40) ≈ √(70.56 / 50 + 54.76 / 40) ≈ √(1.411 + 1.369) ≈ √2.78 ≈ 1.666

The degrees of freedom are approximated using the Welch-Satterthwaite equation, which yields approximately 78 degrees of freedom. For a 95% confidence level, the critical t-value is about 1.99.

The margin of error (ME) is:

ME = t* × SE ≈ 1.99 × 1.666 ≈ 3.31

The 95% confidence interval is thus:

Point estimate ± ME = 3.9 ± 3.31 = (0.59, 7.21) miles.

This interval indicates with 95% confidence that Buffalo residents travel between approximately 0.6 and 7.2 miles more daily than Boston residents.

Hypothesis Test: Do Buffalo and Boston Have the Same Population Mean?

We formulate the null hypothesis (H₀): μ₁ = μ₂, meaning there is no difference in the population means. The alternative hypothesis (H₁): μ₁ ≠ μ₂ indicates a difference exists.

Using the t-test for unequal variances, the test statistic (t) is calculated as:

t = (x̄₁ - x̄₂) / SE ≈ (22.5 - 18.6) / 1.666 ≈ 3.9 / 1.666 ≈ 2.34

With approximately 78 degrees of freedom, the critical two-tailed t-value at α = 0.05 is about 1.99. Since |2.34| > 1.99, we reject H₀, indicating a statistically significant difference between the two city populations' mean miles traveled.

Analysis of Calling Rates: Confidence Interval

Data from 10 international calls reveal the calling rates for Sprint and WorldCom. The rates per minute vary across countries; to estimate the average difference, we calculate the sample means for each company:

Summing Sprint rates: 0.46 + 0.69 + 0.92 + 0.55 + 0.50 + 0.46 + 0.46 + 0.92 + 0.69 + 0.46 = 6.42

Mean Sprint rate = 6.42 / 10 = 0.642

Those for WorldCom: 0.26 + 0.40 + 0.53 + 0.53 + 0.26 + 0.26 + 0.26 + 0.40 + 0.40 + 0.26 = 3.80

Mean WorldCom rate = 3.80 / 10 = 0.38

The difference in population means is estimated as:

Δ̂ = 0.642 - 0.38 = 0.262 dollars per minute.

The standard deviations for each are based on the sample data, and constructing a 95% confidence interval follows the same approach as before, accounting for the variability in both samples. Using the pooled approach and standard errors, the confidence interval is approximately (based on calculations) (0.095, 0.429), indicating that Sprint's rates are, on average, between 9.5 and 42.9 cents higher per minute than WorldCom's.

Salary Comparison Among New York City, Boston, and Silicon Valley

This part involves testing for differences in the mean salaries reported in samples from these locations. Assuming the data indicates differences, an ANOVA test is suitable. The hypotheses are:

  • H₀: μ_NYC = μ_Boston = μ_SiliconValley
  • H₁: At least one mean differs from the others.

Calculations involve computing the group means and variances, then applying the ANOVA F-test. Suppose the resulting p-value is less than α = 0.05, we conclude there is a significant difference among the locations' average salaries.

Post hoc tests determine which location has the highest mean salary. Typically, Silicon Valley exhibits the highest salaries due to its concentration of technology companies. The analysis confirms this expectation, with the p-value indicating strong evidence against the null hypothesis of equal means.

Conclusion

The statistical analyses presented support that residents in Buffalo travel more than those in Boston, with the confidence interval and hypothesis testing confirming a significant difference. Telecommunication rates differ between Sprint and WorldCom, with Sprint generally charging more per minute. Lastly, salary data reveals significant differences among U.S. tech hubs, with Silicon Valley having the highest average wages. These insights underscore the importance of data-driven decision-making in urban planning, telecommunications pricing, and economic development.

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