Do you want to own your own candy store? Wow! With some interest in running your
ID: 2948952 • Letter: D
Question
Do you want to own your own candy store? Wow! With some interest in running your own business and a decent credit rating, you can probably get a bank loan on startup costs for franchises such as Candy Express, The Fudge Company, Karmel Corn, and Rocky Mountain Chocolate Factory. Startup costs (in thousands of dollars) for a random sample of candy stores are given below. Assume that the population of x values has an approximately normal distribution.
(a) Use a calculator with mean and sample standard deviation keys to find the sample mean startup cost x and sample standard deviation s. (Round your answers to one decimal place.)
(b) Find a 90% confidence interval for the population average startup costs ? for candy store franchises. (Round your answers to one decimal place.)
Explanation / Answer
Solution:- Given that values : 99,174,129,92,75,94,116,100,85
n = 9 , df = 9-1 = 8
t = 1.860
(a)
x = 107.1
=> x = sum of terms/number of terms = 964/9 = 107.11
s = 29.7
(b)
90% confidence interval for the population average startup costs :
= X +/- t * s/sqrt(n)
= 107.1 +/- 1.86*29.7/sqrt(9)
= 88.686 , 125.514
= 88.7 , 125.5 (rounded)
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