Question

A marketing researcher wants to estimate the mean savings​ ($) realized by shoppers who showroom. Showrooming is the practice of inspecting products in retail stores and then purchasing the products online at a lower price. A random sample of

64

shoppers who recently purchased a consumer electronics item online after making a visit to a retail store yielded a mean savings of

$54

and a standard deviation of

$47.

Complete parts​ (a) and​ (b).

a.

Construct a

90%

confidence interval estimate for the mean savings for all showroomers who purchased a consumer electronics item.

Answer 1

t critical value at 0.10 significance level with 63 df = 1.669

90% confidence interval for is

- t * S / sqrt(n) < < + t * S / sqrt(n)

54 - 1.669 * 47 / sqrt(64) < < 54 + 1.669 * 47 / sqrt(64)

44.195 < < 63.805

90% CI is ( 44.195 , 63.805 )