Determine expenditure for long distance telephone service

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Market research analyst suspects that average monthly household expenditure for long distance telephone service in City A exceeds average monthly household expenditure for long distance telephone service in City B by more than $20. Market research analyst thinks that monthly household expenditures for long distance telephone service are normally distributed both in City A and City B, and that two population variances are equal. Market research analyst took random sample of 12 City A households and random sample of 15 City B households and recorded following information regarding their monthly expenditures for long distance telephone service.

City A Mean = 843
City B Mean = 54
City A Std. Dev. = 18
City B Std. Dev. = 12
City A Sample Size = 12
City B Sample Size = 15

If 99% confidence interval for mean difference between average monthly household expenditure for long distance telephone service in City A and average monthly expenditure in City B extends from X to Y, determine the value of X?

Reference no: EM13109370

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