Question

What price do farmers get for their watermelon crops? In the third week of July, a random sample of 50 farming regions gave a sample mean of x = $3.10 per 100 pounds of watermelon. Assume that σ is known and σ = $0.80 per 100 pounds of watermelon.
a) What conditions of the problem allow you to use the Standard Normal Distribution (S. N. D.) for calculating a confidence interval?
b) Find a 70% confidence interval for the population mean µ (in units of $ per 100 pounds) that farmers in this region get for their watermelon crop.

c) What is the maximal margin of error, E (in units of $ per 100 pounds) found in b)?

d) What does a 70% confidence interval mean?

Answer 1