ANational Retail Foundation survey found households intended to spend an average

Question

ANational Retail Foundation survey found households intended to spend an average of $ during the December holiday season (The Wall Street Journal, Dccember 2, 2002). Assume that the survey included 600 houscholds and that the sample standard deviation was $175. a. With 95% confidence, what is the margin of error? b. What is the 95% confidence interval estimate of the population mean? c. The prior year, the population mean expenditure per household 649 19. was $632. Discuss the change in holiday season expenditures over the one-year period.

Explanation / Answer

19) a) Margin of Error = (1.960*175)/SQRT(600) = 14.00266

b) 95% Interval

(649-14.00266, 649+14.00266)

= ($635.00, $663.00)

c) If Prior Mean Expenditure is $632, the confidence interval shows that Mean expenditure has been changed over the years because the interval not contain the $632

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