Question

A cruise company would like to estimate the average beer consumption to plan its beer inventory...

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.

Homework Answers

Answer #1

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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