A specialty computer store sells high-end computers. A random selection of 30 co

Question

A specialty computer store sells high-end computers. A random selection of 30 computers was taken and their prices (to the nearest dollar) were recorded. This data is in the “prices.csv” data file. a) Find a 97% confidence interval for the average price of all computers from this specialty store. Interpret this interval. b) Does this interval suggest that the average price of all high-end computers sold at this store is $2,600? Why or why not?

prices 3000 2550 2425 2700 2395 2575 2430 2947 2730 2795 2650 2480 2400 2670 2525 2515 2550 2450 2480 2400 2700 2850 2190 2700 2870 2855 2430 2775 2240 2570

Explanation / Answer

z value at 97% = 2.17

mean = 2594.9 , std.dev = 201.873

CI = mean + / -z * ( s/sqrt(n))
= 2594.9 +/- 2.17 * (201.873 / sqrt(30))
= (2514.9207 , 2674.8793)

we are 97% confident that the average price of all computers from this specialty store. is between 2514.9207 and 2674.8793

Yes, it suggests that the average price of all high-end computers sold at this store is $2,600
because the value 2600 contain in interval.

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