Question

Do you want to own your own candy store? Wow! With some interest
in running your own business and a decent credit rating, you can
probably get a bank loan on startup costs for franchises such as
Candy Express, The Fudge Company, Karmel Corn, and Rocky Mountain
Chocolate Factory. Startup costs (in thousands of dollars) for a
random sample of candy stores are given below. Assume that the
population of *x*values has an approximately normal
distribution.

91 | 177 | 134 | 91 | 75 | 94 | 116 | 100 | 85 |

(a) Use a calculator with mean and sample standard deviation
keys to find the sample mean startup cost *x* and sample
standard deviation *s*. (Round your answers to one decimal
place.)

x = |
____ thousand dollars |

s = |
____ thousand dollars |

(b) Find a 90% confidence interval for the population average
startup costs *μ* for candy store franchises. (Round your
answers to one decimal place.)

lower limit | ____ thousand dollars |

upper limit | ____ thousand dollars |

Answer #1

(a)

From the given data, the mean and standard deviation are got from calculator as follows:

107.0 thousand dollars | |

s | 31.5 thousand dollars |

(b)

SE = s/

= 31.5199/ = 10.5066

= 0.10

ndf = n - 1= 9 - 1= 8

From Table, critical values of t = 1.8595

Confidence Interval:

107 (1.8595 X 10.5066)

= 107 19.5371

= ( 87,5 ,126.5)

So, Answer is:

lower limit | 87.5 thousand dollars |

upper limit | 126.5 thousand dollars |

Do you want to own your own candy store? Wow! With some interest
in running your own business and a decent credit rating, you can
probably get a bank loan on startup costs for franchises such as
Candy Express, The Fudge Company, Karmel Corn, and Rocky Mountain
Chocolate Factory. Startup costs (in thousands of dollars) for a
random sample of candy stores are given below. Assume that the
population of x values has an approximately normal
distribution.
Do you want...

Do you want to own your own candy store? Wow! With some interest
in running your own business and a decent credit rating, you can
probably get a bank loan on startup costs for franchises such as
Candy Express, The Fudge Company, Karmel Corn, and Rocky Mountain
Chocolate Factory. Startup costs (in thousands of dollars) for a
random sample of candy stores are given below. Assume that the
population of x values has an approximately normal
distribution.
92
176
134...

Do you want to own your own candy store? Wow! With some interest
in running your own business and a decent credit rating, you can
probably get a bank loan on startup costs for franchises such as
Candy Express, The Fudge Company, Karmel Corn, and Rocky Mountain
Chocolate Factory. Startup costs (in thousands of dollars) for a
random sample of candy stores are given below. Assume that the
population of x values has an approximately normal distribution. 99
173 134...

Do you want to own your own candy store? Wow! With some interest
in running your own business and a decent credit rating, you can
probably get a bank loan on startup costs for franchises such as
Candy Express, The Fudge Company, Karmel Corn, and Rocky Mountain
Chocolate Factory. Startup costs (in thousands of dollars) for a
random sample of candy stores are given below. Assume that the
population of x values has an approximately normal
distribution.
90
170
134...

Do you want to own your own candy store? Wow! With some interest
in running your own business and a decent credit rating, you can
probably get a bank loan on startup costs for franchises such as
Candy Express, The Fudge Company, Karmel Corn, and Rocky Mountain
Chocolate Factory. Startup costs (in thousands of dollars) for a
random sample of candy stores are given below. Assume that the
population of x values has an approximately normal
distribution.
90
170
126...

Do you want to own your own candy store? Wow! With some interest
in running your own business and a decent credit rating, you can
probably get a bank loan on startup costs for franchises such as
Candy Express, The Fudge Company, Karmel Corn, and Rocky Mountain
Chocolate Factory. Startup costs (in thousands of dollars) for a
random sample of candy stores are given below. Assume that the
population of x values has an approximately normal
distribution.
91
179
132...

Do you want to own your own candy store? Wow! With some interest
in running your own business and a decent credit rating, you can
probably get a bank loan on startup costs for franchises such as
Candy Express, The Fudge Company, Karmel Corn, and Rocky Mountain
Chocolate Factory. Startup costs (in thousands of dollars) for a
random sample of candy stores are given below. Assume that the
population of x values has an approximately normal
distribution.
97
172
127...

Do you want to own your own candy store? Wow! With some interest
in running your own business and a decent credit rating, you can
probably get a bank loan on startup costs for franchises such as
Candy Express, The Fudge Company, Karmel Corn, and Rocky Mountain
Chocolate Factory. Startup costs (in thousands of dollars) for a
random sample of candy stores are given below. Assume that the
population of x values has an approximately normal
distribution.
96
180
128...

Do you want to own your own candy store? Wow! With some interest
in running your own business and a decent credit rating, you can
probably get a bank loan on startup costs for franchises such as
Candy Express, The Fudge Company, Karmel Corn, and Rocky Mountain
Chocolate Factory. Startup costs (in thousands of dollars) for a
random sample of candy stores are given below. Assume that the
population of x values has an approximately normal distribution.
100 175 127...

Do you want to own your own candy store? Wow! With some interest
in running your own business and a decent credit rating, you can
probably get a bank loan on startup costs for franchises such as
Candy Express, The Fudge Company, Karmel Corn, and Rocky Mountain
Chocolate Factory. Startup costs (in thousands of dollars) for a
random sample of candy stores are given below. Assume that the
population of x values has an approximately normal
distribution.
90
175
132...

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