Question

An online used car company sells second-hand cars. For 30 randomly selected transactions, the mean price...

An online used car company sells second-hand cars. For 30 randomly selected transactions, the mean price is 3000 dollars. Part a) Assuming a population standard deviation transaction prices of 150 dollars, obtain a 99% confidence interval for the mean price of all transactions. Please carry at least three decimal places in intermediate steps. Give your final answer to the nearest two decimal places, and use at least 3 decimal places in your critical value.

Math   Statistics-And-Probability   
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Answer #1

Solution :

Given that,

Z/2 = 2.576

Margin of error = E = Z/2* ( /n)

= 2.576 * (150 / 30)

= 70.55

At 99% confidence interval estimate of the population mean is,

- E < < + E

3000 - 70.55 < < 3000 + 70.55

2929.45 < < 3070.55

(2929.45 , 3070.55)

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