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.

$64

$65

$65

$67

$57

$65

$69

$61

$65

$55

$53

$64

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

Estimated population mean

$

b.	Develop a 99% 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 $61 per month reasonable?

	Yes
	No

Answer 1