Question

4. The Simcoe County Food Emporium claims that the typical customer spends $59 per visit. A sample of 12 customers revealed the following purchases, in dollars, spent last visit: $62 60 69 65 59 69 68 68 66 67 58 59 a. What is the point estimate of the population mean? (Round the final answer to 2 decimal places.) 12 points Point estimate $ 00:32:10 b. Develop a 80% confidence interval for the population mean (Round the final answers to 2 decimal places.) The confidence interval for the population mean is between $ and $ C. Is the restaurant's claim that the typical customer spends $59 per visit reasonable? (Click to select)

Answer 1

Answer:

a)

point estimate = 64.17

b)

formula is

S TĚtc* n

where tc is the t critical value with c=80% and df= n-1 = 12 -1 = 11

tc = 1.363

$64.17 \pm 1.363* \frac{4.2817 } { \sqrt{12}}$

( 62.48 , 65.85 )

$ 62.48 and $ 65.85

c)

no, restaurants claim is not reasonable

because, lower bound of confidence interval is greater than $ 59. hence $59 do not lie in our confidence interval.