A cruise company would like to estimate the average beer consumption to plan its beer inventory levels on future seven-day cruises. (The ship certainly doesn't want to run out of beer in the middle of the ocean!) The average beer consumption over 16 randomly selected seven-day cruises was 81,867 bottles with a sample standard deviation of 4,522 bottles. Complete parts a and b below.
a. Construct a 99% confidence interval to estimate the average beer consumption per cruise. The 99% confidence interval to estimate the average beer consumption per cruise is from a lower limit of 78,536 bottles to an upper limit of 85,198 bottles. (Round to the nearest whole numbers.)
b. What assumptions need to be made about this population?
A. The only assumption needed is that the population follows the normal probability distribution.
B. The only assumption needed is that the population follows the Student's t-distribution.
C. The only assumption needed is that the population size is larger than 30.
D. The only assumption needed is that the population distribution is skewed to one side.
sample mean = 81867
sample standard deviation = 4522
sample size (n) = 16
For, Z Test for mean, the 99% confidence interval is
The lower limit is 78955 bottles
The upper limit is 84779 bottles.
b.
The correct answer is part A.
This is Z test for mean.
A. The only assumption needed is that the population follows Normal probability distribution.
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