Last year, Groton, Georgia, had 512 burglaries. The police chief wants to know the average economic loss associated with burglaries in Groton and wants to know if this afternoon, There isn't time to analyze all 512 burglaries, so the department's research analyst selects 10 burglaries at random, which show the following losses.
$550 $874
$675 $595
$324 $835
$487 $910
$1,246 $612
What is the best estimate of the average loss on a burglary? Place 80% confidence limits around this estimate.
From the given data,
the best estimate of the average loss on a burglary = 710.80
Std.dev = 262.0834
t value at 80% = 1.3830
CI = mean +/- t *(s/sqrt(n))
= 710.80 +/- 1.383 *(262.0834/sqrt(10))
= (596.1797 , 825.42030
The 80% CI is (596.1797 , 825.4203)
Last year, Groton, Georgia, had 512 burglaries. The police chief wants to know the average economic...