Question

Some accounting firms give the client an option to pay a fee when the tax return is completed that guarantees tax advices and support from the accountant if the client were audited. A large accounting firm is trying to determine what fee to charge for next​ year's returns. In previous​ years, the actual mean cost to the firm for attending a client audit session was ​$680. To determine if this cost has​ changed, the firm randomly samples 34 client audit fees. The sample mean audit cost was ​$710 with a standard deviation of ​$65. Complete parts a and b below.

​a) Develop a 90​% confidence interval estimate for the mean audit cost.

Answer 1

The 90%Cl estimate for the mean Audit cost is

$ 691.135 <​​​​​ < $ 728.865

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