A consumer advocate is comparing income for a wide variety of jobs between the South and the Northeast.The average income of a simple random sample of 800 jobs in the Northeast is compared to the average income of a simple random sample of 750 jobs in the South.From the collected data,950 resamples are taken.Each time,750 incomes are selected with replacement from the data collected from the South,and 800 incomes are selected with replacement from the data collected from the Northeast.The distribution of the difference in means based on the resamples is shown below (in thousands of dollars). The mean of the resamples is $7393,and the standard deviation of the resamples is $10,807.The observed difference in sample mean incomes was $6987.What is the bootstrap estimate of the bias?
A)$200
B)$406
C)$3414
D)$3820

Question

A consumer advocate is comparing income for a wide variety of jobs between the South and the Northeast.The average income of a simple random sample of 800 jobs in the Northeast is compared to the average income of a simple random sample of 750 jobs in the South.From the collected data,950 resamples are taken.Each time,750 incomes are selected with replacement from the data collected from the South,and 800 incomes are selected with replacement from the data collected from the Northeast.The distribution of the difference in means based on the resamples is shown below (in thousands of dollars).  The mean of the resamples is $7393,and the standard deviation of the resamples is $10,807.The observed difference in sample mean incomes was $6987.What is the bootstrap estimate of the bias?
A)$200 
B)$406 
C)$3414 
D)$3820

Quizplus · Accepted Answer

The bias is given by the difference between the mean of the resamples and the observed difference in sample mean incomes. Therefore, we have: 
Bias = $7393 - $6987 = $406 
Therefore, the correct answer is B.

A Consumer Advocate Is Comparing Income for a Wide Variety