Chapter 8 Homework: Problem 13 Previous Problem Problem List Next Problem (1 poi

Question

Chapter 8 Homework: Problem 13 Previous Problem Problem List Next Problem (1 point) An online used car company sells second-hand cars. For 30 randomly selected transactions, the mean price is 2400 dollars. Part a) Assuming a population standard deviation transaction prices of 200 dollars, obtain a 99% confidence interval for the mean price of all transactions. Please carry at least three decimal places in intermediate steps. Give your final answer to the nearest two decimal places, and use at least 3 decimal places in your critical value. Confidence interval: ( Part b) Which of the following is the correct interpretation for your answer in part (a)? A. We can be 99% confident that the mean price for this sample of 30 transactions lies in the interval B. There is a 99% chance that the mean price of all transactions lies in the interval O C. If we repeat the study many times, 99% of the calculated confidence intervals will contain the mean price of all transactions. D. None of the above Note:VOu can earn nartial credit on this nrohlem

Explanation / Answer

The statistical software output for this problem is:

One sample Z summary confidence interval:
: Mean of population
Standard deviation = 200

99% confidence interval results:

Hence,

Part - A) Confidence interval: (2305.94, 2494.06)

Part - B) Option B is correct.

Mean n Sample Mean Std. Err. L. Limit U. Limit 30 2400 36.514837 2305.944 2494.056

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