Suppose that Randy is an analyst for the bicyling industry and wants to estimate
ID: 3310336 • Letter: S
Question
Suppose that Randy is an analyst for the bicyling industry and wants to estimate the asking price of used entry-level road bikes advertised online in the southeastern part of the United States. He obtains a random sample of n=10 online advertisements of entry-level road bikes. He determines that the mean price for these 10 bikes is x=$659.87 and that the sample standard deviation is s=$197.02. He uses this information to construct a 95% confidence interval for , the mean price of a used road bike.
What is the lower limit of this confidence interval? Please give your answer to the nearest cent.
What is the upper limit of this confidence interval? Please give your answer to the nearest cent.
Explanation / Answer
The statistical software output for this problem is:
One sample T summary confidence interval:
: Mean of population
95% confidence interval results:
Hence,
95% confidence interval will be:
Lower limit = 518.93
Upper limit = 800.81
Mean Sample Mean Std. Err. DF L. Limit U. Limit 659.87 62.303194 9 518.93038 800.80962