Question

Suppose that you are the director of table game operations at a large casino, known especially for its poker room. You are interested in determining the average number of hands the casino should expect per hour during peak hours in the poker room. You monitor the number of hands over the next week and given a random sample of 21 hours, you see that on average 197 hands are played per hour, with a standard deviation of 9.45 hands and you calculated a 90% confidence interval to be (193.4, 200.6). Your manager believes the true mean is 131.9. Which of the following is the best conclusion?

Question 7 options:

	1) We are 90% confident that the average number of hands played per hour is greater than 131.9.
	2) We are 90% confident that the average number of hands played per hour is less than 131.9.
	3) We cannot determine the proper interpretation based on the information given.
	4) The percentage of hours in which more than 131.9 hands of poker are played is 90%.
	5) The average number of hands played per hour is not significantly different from 131.9

Answer 1

Solution:

Given:

Sample size = n = 21

Sample mean =

T= 197

Sample standard deviation =s =9.45

a 90% confidence interval is (193.4, 200.6).

Claim: manager believes the true mean is 131.9

We have to make conclusion by using given confidence interval.

Since a 90% confidence interval is (193.4, 200.6) and these both limits are greater than claimed mean of manager 131.9, there is sufficient evidence to conclude that: the average number of hands played per hour is greater than 131.9.

Thus correct option is:

1) We are 90% confident that the average number of hands played per hour is greater than 131.9