Example 11.5 A firm has appointed a large number of dealers all over the country to sell its bicycles. It is interested in knowing the average sales per dealer. A random sample of 25 dealers is selected for this purpose. The sample mean is Rs 50,000 and the standard error is Rs 20,000. Construct an interval estimate with 95 per cent confidence. n=25 df=24 degrees of freedom 0.025 of area under 1 0.025 of area under the curve the curve 0.95 of area under the curve + ↓ 1 1 X = 50000 41,744 –2.064 ôx +2.064 ôx 58,256 Fig. 11.4 At distribution for 24 degrees of freedom, showing a 95 percent confidence interval.

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