Good day,
I have been thinking over this exercize for a couple of hours now and I have trouble finding a starting point.
Suppose that X1,i iid∼ N(µ1, σ²), X2,i iid ∼ N(µ2, σ²), that the samples are pairwise independent, and that σ is known. Derive a 1 − α confidence interval for µD = µ1 − µ2
I...