Used car auctions give car dealers an opportunity to increase their used car inventory by purchasing cars used as rental cars, assigned to company executives, and other similar activities. Suppose population 1 is all black cars sold at used car auctions, and population 2 is all white cars sold at used car auctions. Of interest is to estimate the difference in the mean sale price of all black cars sold at used car auctions and the mean sale price of all white cars sold at used car auctions. Based on this, using both the appropriate symbol and in words, state the one parameter of interest.

a. The parameter of interest is μ the difference in the mean sale price of all black cars sold at used car auctions and the mean sale price of all white cars sold at used car auctions.
b. The parameter of interest is μ1, the mean sale price of all black cars sold at used car auctions.
c. The parameter of interest is μ1-μ2, the difference in the mean sale price of all black cars sold at used car auctions and the mean sale price of all white cars sold at used car auctions.
d. The parameter of interest is μ2, the mean sale price of all white cars sold at used car auctions.

c. The parameter of interest is μ1-μ2, the difference in the mean sale price of all black cars sold at used car auctions and the mean sale price of all white cars sold at used car auctions

Step-by-step explanation:

Of interest is to estimate the difference in the mean sale price of all black cars sold at used car auctions and the mean sale price of all white cars sold at used car auctions.

The parameter of interest is the difference. Suppose we have that [tex]\mu_1[/tex] is the mean sale price of all black cars sold at used car auctions, while [tex]\mu_2[/tex] is the the mean sale price of all white cars sold at used car auctions. Since the parameter of interest is the difference, it is [tex]\mu_1 - \mu_2[/tex], and the correct answer is given by option c.