Question

What price do farmers get for their watermelon crops? In the third week of July, a random sample of 41 farming regions gave a sample mean of x bar = $6.88 per 100 pounds of watermelon. Assume that σ is known to be $1.94 per 100 pounds. (a) Find a 90% confidence interval for the population mean price (per 100 pounds) that farmers in this region get for their watermelon crop (in dollars). What is the margin of error (in dollars)? (For each answer, enter a number. Round your answers to two decimal places.)

lower limit $ _____

upper limit $ _____

margin of error $ _____

(b) Find the sample size necessary for a 90% confidence level with maximal error of estimate E = 0.29 for the mean price per 100 pounds of watermelon. (Enter a number. Round up to the nearest whole number.)

______ farming regions

(c) A farm brings 15 tons of watermelon to market. Find a 90% confidence interval for the population mean cash value of this crop (in dollars). What is the margin of error (in dollars)? Hint: 1 ton is 2000 pounds. (For each answer, enter a number. Round your answers to two decimal places.)

lower limit $ _____

upper limit $ _____

margin of error $ ______

Answer 1

(a)

Standard error of mean = = 1.94 / = 0.3029770981

Z value for 90% confidence interval is 1.645

Margin of error = Z * Std Error = 1.645 * 0.3029770981 = 0.50

lower limit = 6.88 - 0.50 = $ 6.38

upper limit = 6.88 + 0.50 = $ 7.38

margin of error $ 0.50

(b)

Sample size, n =

121 farming regions

(c)

15 tons of watermelon = 15 * 2000 / 100 = 300 per 100 pounds of watermelon

lower limit = 300 * 6.38 = $ 1914

upper limit = 300 * 7.38 = $ 2214

margin of error = 300 * 0.5 = $ 150