Answer
With 95% confidence, it can be said that the population mean replacement cost falls between \$2,532.20 and \$2,767.80
Work Step by Step
Formula for CI: $\bar{x}$ $\pm$ ( z$\times$$\frac{\sigma}{\sqrt n}$)
$2650 \pm ( 1.96\times\frac{425}{\sqrt 50}$)
= $2650 \pm 117.804$
CI: $2,532.196 < \mu < 2,767.804 \approx 2,532.20 < \mu < 2,767.80$
Interpretation: With 95% confidence, it can be said that the population mean replacement cost falls between \$2,532.20 and \$2,767.80
