Answered: The upper limit of the 95% confidence…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Goofy Marketing Solutions conducted a survey among 16 randomly selected visitors to the newly opened Outlet Shoppes at Atlanta to measure their satisfaction with the shopping experience. The sample satisfaction score is normally distributed around a mean of �¯=67with a sample standard deviation of s=7.509. Determine the 95% confidence interval for the population mean from the sample.

The upper limit of the 95% confidence interval is (rounded)....

Features Features Normal distribution is characterized by two parameters, mean (µ) and standard deviation (σ). When graphed, the mean represents the center of the bell curve and the graph is perfectly symmetric about the center. The mean, median, and mode are all equal for a normal distribution. The standard deviation measures the data's spread from the center. The higher the standard deviation, the more the data is spread out and the flatter the bell curve looks. Variance is another commonly used measure of the spread of the distribution and is equal to the square of the standard deviation.

Expert Solution

Step 1

Sample mean = 67

sample standard deviation(sd.) = 7.509

The normal distribution value for 95% confidence level (z_a/2) = 1.96

The formula for confidence interval is :-

sample mean -₊(z_a/2) ( sd. / n^1/2)

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