Question 14.66

14.66 Comparing confidence intervals.

CASE 14.1 Refer to the previous exercise.

moral

  1. Construct simultaneous confidence interval for the average difference in purchase likelihood between the moral decoupling group and the control group.
  2. Construct the simultaneous confidence interval for the average difference in transformed purchase likelihood between the moral decoupling group and the control group.
    Table 14.23: TABLE 14.1 Price promotion data
    Number of
    promotions
    Expected price (dollars)
    1 3.78 3.82 4.18 4.46 4.31 4.56 4.36 4.54 3.89 4.13
    3.97 4.38 3.98 3.91 4.34 4.24 4.22 4.32 3.96 4.73
    3.62 4.27 4.79 4.58 4.46 4.18 4.40 4.36 4.37 4.23
    4.06 3.86 4.26 4.33 4.10 3.94 3.97 4.60 4.50 4.00
    3 4.12 3.91 3.96 4.22 3.88 4.14 4.17 4.07 4.16 4.12
    3.84 4.01 4.42 4.01 3.84 3.95 4.26 3.95 4.30 4.33
    4.17 3.97 4.32 3.87 3.91 4.21 3.86 4.14 3.93 4.08
    4.07 4.08 3.95 3.92 4.36 4.05 3.96 4.29 3.60 4.11
    5 3.32 3.86 4.15 3.65 3.71 3.78 3.93 3.73 3.71 4.10
    3.69 3.83 3.58 4.08 3.99 3.72 4.41 4.12 3.73 3.56
    3.25 3.76 3.56 3.48 3.47 3.58 3.76 3.57 3.87 3.92
    3.39 3.54 3.86 3.77 4.37 3.77 3.81 3.71 3.58 3.69
    7 3.45 3.64 3.37 3.27 3.58 4.01 3.67 3.74 3.50 3.60
    3.97 3.57 3.50 3.81 3.55 3.08 3.78 3.86 3.29 3.77
    3.25 3.07 3.21 3.55 3.23 2.97 3.86 3.14 3.43 3.84
    3.65 3.45 3.73 3.12 3.82 3.70 3.46 3.73 3.79 3.94

    756

  3. We can’t directly compare the two intervals because they are on a different scale. Backtransform the upper and lower endpoints of your confidence interval in part (b). This is done by taking the sine of each endpoint, squaring them, and then multiplying by 100.
  4. Now compare the confidence intervals in parts (a) and (c). Write a summary paragraph explaining which interval you prefer.