Produce a point estimate for the mean difference
What is the difference in average daily hotel room rates between Minneapolis and New Orleans? Suppose we want to estimate this difference by taking hotel rate samples from each city and using a 98% confidence level. The data for such a study follow. Use these data to produce a point estimate for the mean difference in the hotel rates for the two cities. Assume the population variances are approximately equal and hotel rates in any given city are normally distributed.
MINNEAPOLIS | NEW ORLEANS |
n_{M} = 22 | n_{NO} = 22 |
¯xM=$112 x¯M=$112 | ¯xNO=$122 x¯NO=$122 |
s_{M} = $ 11 | s_{NO} = $ 12 |