Question

Warren County Telephone Company claims in its annual report that “the typical customer spends $62 per month on local and long-distance service.” A sample of 12 subscribers revealed the following amounts spent last month.

$65

$65

$63

$66

$59

$64

$67

$61

$63

$57

$55

$65

a.	What is the point estimate of the population mean? (Round your answer to 3 decimal places.)

Estimated population mean

$

b.	Develop a 98% confidence interval for the population mean. (Use t Distribution Table.) (Round your answers to 3 decimal places.)

Confidence interval for the population mean

$  and $

c.	Is the company's claim that the "typical customer" spends $62 per month reasonable?
	Yes No

Answer 1

Hypothesis Test: Mean vs. Hypothesized Value 62.000 hypothesized value 62.500 mean Sample 3.754 std. dev. 1.084 std. error 12 n 11 df 59.555 confidence interval 98% lower 65445 confidence interval 98% upper 2.945 margin of error The point estimate of the population mean is 62.500 Confidence interval for the population mean S59.555 and S65.445. (c). Yes.