Question

Suppose that Randy is an analyst for the bicyling industry and wants to estimate the asking price of used entry-level road hikes advertised online in the southeastern part of the United States. He obtains a random sample of 13 online advertisements of entry level road bikes. He determines that the mean price for these 13 hikes is =5681.87 and that the sample standard deviation is s = $177.45. He uses this information to construct a 99% confidence interval for p, the mean price of a used road bike. What is the lower limit of this confidence interval? Please give your answer to the nearest cent. 150.35 What is the upper limit of this confidence interval? Please give your answer to the nearest cent. s 4322.22 Assuming that the requirements for this inference procedure have been met, what does this interval mean? The sample mean price will fall in this interval in 99% of samples. There is a 99% chance that the interval contains the the mean price of all such road bikes. The prices of 99% of all used road bikes fall within this interval. There is a 99% chance that the mean price of all such road bikes is between the lower and upper bounds

Answer 1

solution! Given that, x= 681.87 6-177.45 na 13 dan-J 13-) - 12 At qa lo confidence level the tis Xal-da olo L= 1-0.99 -0.01 a = 001 = 0.005 tarzidf=tooos : 12 =3.055 At aaolo confidence interval fora Ť I +212: dfas Vh 681-87 + 3.055 X 1.77045 T13 681-87 1150.35 ( 531.52,832.22) Lower limit =531-52 upper limit =832.22 option CD is correct.