Question

Hoping to lure more shoppers​ downtown, a city builds a new public parking garage in the central business district. The city plans to pay for the structure through parking fees. For a random sample of 44​ weekdays, daily fees collected averaged​ $126, with a standard deviation of​ $15. Suppose that for budget planning​ purposes, the city needs a better estimate of the mean daily income from parking fees. Complete parts ​(a) through ​(c). ​(a) Someone suggests that the city use its data to create a​ 95% confidence interval instead of the​ 90% interval the city first created. Would this increased interval be better for the​ city? ​ (You need not actually create the​ interval.) A. Yes. A​ 95% confidence level gives increased confidence that the mean parking revenue is contained with the interval. B. Yes. A​ 95% confidence level means that more people were sampled so the interval is more accurate. C. No. There is no significant difference between using the​ 90% confidence level and the​ 95% confident level. ​(b) Would the​ 95% confidence interval be worse for the​ planners? A. Yes. A​ 95% confidence level creates a narrower interval and​ is, therefore, more precise and will cost the planners more money. B. Yes. The increased confidence level creates a wider interval and​ is, therefore, less precise. C. No. The increased confidence interval would not be worse for the planners. ​(c) How could they achieve a confidence interval estimate that would better serve their planning​ needs? A. The city officials and planner could compromise and use a​ 92.5% confidence interval. B. They could collect a larger sample which would create a more precise interval without sacrificing confidence. C. They could include the weekend parking fees in the sample.

Answer 1

Dear student , please like it.

Thanks.