Joe is a shop manager at a truck line and is approached by asalesman about some

Question

Joe is a shop manager at a truck line and is approached by asalesman about some new tires. The salesman assures Joe thatthe tires will get an average of 60,000 miles before wearingout. Not being that gullible Joe asks for 100 tires for atest. The tires are mounted and run to wear-out and the 95%confidence interval of average mileage is calculated. Average61,000 - Confidence interval 58.000 miles to 64,000 miles. What number or numbers might the salesman point to? Whatnumber or nubmers might Joe be concerned about? What is thecorrect number? (this is a trick question!) Assume the sample mean and confidence interval was: Average 63,000 Confidence interval 60,000 to 66,000. Whymight Joe still be concerned? The confidence interval is calculated on the mean (oraverage). How might that affect the decision Joe has tomake? Joe is a shop manager at a truck line and is approached by asalesman about some new tires. The salesman assures Joe thatthe tires will get an average of 60,000 miles before wearingout. Not being that gullible Joe asks for 100 tires for atest. The tires are mounted and run to wear-out and the 95%confidence interval of average mileage is calculated. Average61,000 - Confidence interval 58.000 miles to 64,000 miles. What number or numbers might the salesman point to? Whatnumber or nubmers might Joe be concerned about? What is thecorrect number? (this is a trick question!) Assume the sample mean and confidence interval was: Average 63,000 Confidence interval 60,000 to 66,000. Whymight Joe still be concerned? The confidence interval is calculated on the mean (oraverage). How might that affect the decision Joe has tomake?

Explanation / Answer

In both the cases the Sample mean value is lies in theconfidence interval

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