Question

Warren County Telephone Company claims in its annual report that “the typical customer spends $61 per month on local and long-distance service.” A sample of 12 subscribers revealed the following amounts spent last month. $65 $63 $65 $67 $60 $64 $68 $62 $64 $64 $55 $66

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

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

c. Is the company's claim that the "typical customer" spends $61 per month reasonable?

Answer 1