A major department store chain is interested in estimating the mean amount its credit card customers spent on their first visit to the chain's new store in the mall. Fifteen credit card accounts were randomly sampled and analyzed with the following results:  = $50.50 and S = 20. Construct a 95% confidence interval for the mean amount its credit card customers spent on their first visit to the chain's new store in the mall assuming that the amount spent follows a normal distribution.

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Asked Oct 22, 2019
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A major department store chain is interested in estimating the mean amount its credit card customers spent on their first visit to the chain's new store in the mall. Fifteen credit card accounts were randomly sampled and analyzed with the following results:  = $50.50 and = 20. Construct a 95% confidence interval for the mean amount its credit card customers spent on their first visit to the chain's new store in the mall assuming that the amount spent follows a normal distribution.

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Expert Answer

Step 1

The 95% confidence interval for the mean amount its credit card customers spent on their first visit the chain’s new store in the mall is obtained below:

The formula for confidence interval one sample t test is given below:

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CI tt

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Step 2

Sample mean = 50.50.

Sample standard deviation, s is 20.

It is given that,

The sample size, n is 15.

The t-critical value for 95% confidence in...

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20 CI 50.50 2.145 V15 = 50.50 11.077 =(39.42,61.58)

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