Answer
We are 95% confident that the mean tax paid for a 3-day business trip is between 73.07 and 93.63.
Work Step by Step
Here we have n = 8, df = n-1 = 7, x̅ = 83.35 and s = 12.32
Confidence = 95%
α = 1 - 0.95 = 0.05, α/2 = 0.025, $t_{α/2} = 10.28$
$E = 2.36 \times \frac{12.32}{\sqrt 8} = 10.28 $
Lower Bound = x̅ - E = 83.35 - 10.28 = 73.07
Upper Bound = x̅ + E = 83.35 + 10.28 = 93.63