Question

Bank of Pasadena and Health Care Retirement Inc. are two large employers in down-town Toledo, Ohio. They are considering jointly offering childcare for their employees. As a part of the feasibility study, they wish to estimate the mean weekly child-care cost of their employees. A sample of 10 employees who use childcare reveals the following amounts spent last week. $107 $92 $97 $95 $105 $101 $91 $99 $95 $104 Develop a 90% confidence interval for the population mean. Interpret the result. Is it reasonable to conclude that the population mean is $101.78. (Show your work please)

Answer 1

n = 10

= 98.6

= 5.542

Confidence Interval:

Based on the confidence interval calculated above we can say that we are 90% confident of the interval (95.39, 101.81) of containing population mean of weekly child-care cost of their employees.

Yes, because as we can see the interval does contain the value 101.78.

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