Hoping to lure more shoppers downtown, a city builds a new public parking garage
ID: 3239423 • Letter: H
Question
Hoping to lure more shoppers downtown, a city builds a new public parking garage in the central business district. The city plans to pay for the structure through parking fees. For a random sample of 44 weekdays, daily fees collected averaged exist126. with a standard deviation of exist15. Suppose that for budget planning purposes, the city needs a better estimate of the mean daily income from parking fees. Complete pans (a) through (c). (a) Someone suggests that the city use its data to create a 95% confidence interval instead of the 90% interval the city first created. Would this increased interval be better for the city? (You need not actually create the interval.) A. Yes. A 95% confidence level means that more people were sampled so the interval is more accurate. B. Yes. A 95% confidence level gives increased confidence that the mean parking revenue is contained with the interval. C. No. There is no significant difference between using the 90% confidence level and the 95% confident level. (b) Would the 95% confidence interval be worse for the planners? A. Yes. A 95% confidence level creates a narrower interval and is, therefore, more precise and will cost the planners more money. B. Yes. The increased confidence level creates a wider interval and is, therefore, less precise. C. No. The increased confidence interval would not be worse for the planners. (c) How could they achieve a confidence interval estimate that would better serve their planning needs? A. The city officials and planner could compromise and use a 92.5% confidence interval. B. They could include the weekend parking fees in the sample. C. They could collect a larger sample which would create a more precise interval without sacrificing confidence.Explanation / Answer
a) Yes. A 95% confidence level gives increased confidence that mean parking revenue is contained with the interval
b) No. The increased confidence interval would not be worse for the plannners.
c) They could collect a larger sample which would create a more precise interval without sacrificing confidence.
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