Elementary Statistics (12th Edition)

Published by Pearson
ISBN 10: 0321836960
ISBN 13: 978-0-32183-696-0

Chapter 7 - Estimates and Sample Sizes - 7-3 Estimating a Population Mean - Basic Skills and Concepts - Page 357: 11


μ is between 3315 and 22481.

Work Step by Step

$\alpha=1-0.95=0.05.$ $\sigma$ is not known, hence we use the t-distribution with $df=sample \ size-1=5-1=4$ in the table. $t_{\alpha/2}=t_{0.025}=2.776.$ Margin of error:$t_{\alpha/2}\cdot\frac{s}{\sqrt {n}}=2.775\cdot\frac{7719}{\sqrt{5}}=9583.$ Hence the confidence interval:$\mu$ is between 12898-9583=3315 and 12898+9583=22481. The data set has an outlier of 0.001 dollars.
Update this answer!

You can help us out by revising, improving and updating this answer.

Update this answer

After you claim an answer you’ll have 24 hours to send in a draft. An editor will review the submission and either publish your submission or provide feedback.