Question

Data were collected on the amount spent by 64 customers for lunch at a major Houston restaurant. These data are contained in the file named Houston. Based upon past studies the population standard deviation is known with = $8. Click on the datafile logo to reference the data. DATA file Round your answers to two decimal places. If needed, use the critical value with three decimal places. a. At 99% confidence, what is the margin of error? b. Develop a 99% confidence interval estimate of the mean amount spent for lunch to Check My Wor

Answer 1

Ay given Mean (0 = Xc tule n from data X = 20.50 +14.63 + + 20.85 64 : 1377.28 64 X = 21.52 standand duration (6) = 8 [given] As (6) sigma is known for population (1) M = x + Z (12) un Aut qq.1. confidence To 1-0.99 = 0.01 Tg = 0.005 Z(0.005) 2.596 ca [sing 2-table margin of Error E) - 26,2) un 2.5868 vay E 2.58 994. confidenre Intewad u= X I Mi 2652 72.58 M[18.44, 24,10] 99% confidence Intewel estimate mean amount is 18.94 to # 24.10 TA A