A man needs to estimate his income from tips in order to apply for a loan. He ea

Question

A man needs to estimate his income from tips in order to apply for a loan. He earns $21.90, $21.35, $16.40, $20.05, $18.65, $15.85, $17.65, and $20.95 over the course of 8 days. He says "I earned more than $20 on half of the days so I thought I could report that I earned $20/day in tips on average". Although, the sample mean is only $19.10 and half of his earnings are below $19, so you suggest another solution.

b) You recommed that he give the bank a confidence interval. Compute a 95% confidence interval for the mean tip.

Explanation / Answer

One-Sample T: C1

Descriptive Statistics

: mean of C1

Test

Test statistic = -1.1

p-value = 0.154

since p-value > 0.05

we fail to reject the null

there is no significant evidence that mean is less than 20

b)

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