Do you want to own your own candy store? Wow! With some interest in running your own business and a decent credit rating, you can probably get a bank loan on startup costs for franchises such as Candy Express, The Fudge Company, Karmel Corn, and Rocky Mountain Chocolate Factory. Startup costs (in thousands of dollars) for a random sample of candy stores are given below. Assume that the population of x values has an approximately normal distribution. 99 173 134 90 75 94 116 100 85 (a) Use a calculator with mean and sample standard deviation keys to find the sample mean startup cost x and sample standard deviation s. (Round your answers to one decimal place.) x = 107.3 thousand dollars s = thousand dollars (b) Find a 90% confidence interval for the population average startup costs μ for candy store franchises. (Round your answers to one decimal place.) lower limit thousand dollars upper limit thousand dollars
a)
We have for given data,
Sample mean =107.3
Sample standard deviation =30.1
b)
Sample size =9
Level of significance=1-0.90=0.1
Degree of freedom =8
t critical value is (by using t table)=
1.86
Confidence interval formula is
=(88.6,126)
Lower confidence limit=88.6
Upper confidence limit= 126.0
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