/*! This file is auto-generated */ .wp-block-button__link{color:#fff;background-color:#32373c;border-radius:9999px;box-shadow:none;text-decoration:none;padding:calc(.667em + 2px) calc(1.333em + 2px);font-size:1.125em}.wp-block-file__button{background:#32373c;color:#fff;text-decoration:none} Q 8.86 Fuel Expenditures. In estimating... [FREE SOLUTION] | 91Ó°ÊÓ

91Ó°ÊÓ

Fuel Expenditures. In estimating the mean monthly fuel expenditure, μ, per household vehicle, the Energy Information Ad- ministration takes a sample of size 6841. Assuming that σ=$20.65. determine the margin of error in estimating μ at the 95% level of confidence.

Short Answer

Expert verified

Margin of Error is 956%and confidence level is $0.49.

Step by step solution

01

Given Information

It is given that

n=6841

σ=$20.65

Calculations to be done at95%confidence level.

02

Determination of Za2

Margin of Error at 95%confidence level is

1-α=0.95

⇒α=0.05

⇒α2=0.025

Hence, Za2=Z0.025=1.96

03

Calculation of Margin of Error

At95% confidence level, Margin of Error is
E=Z0.025×σn

E=1.96×20.656841=0.49

Required Margin of Error is$0.49

Unlock Step-by-Step Solutions & Ace Your Exams!

  • Full Textbook Solutions

    Get detailed explanations and key concepts

  • Unlimited Al creation

    Al flashcards, explanations, exams and more...

  • Ads-free access

    To over 500 millions flashcards

  • Money-back guarantee

    We refund you if you fail your exam.

Over 30 million students worldwide already upgrade their learning with 91Ó°ÊÓ!

One App. One Place for Learning.

All the tools & learning materials you need for study success - in one app.

Get started for free

Most popular questions from this chapter

Explain the effect on the margin of error and hence the effect on the accuracy of estimating a population mean by a sample mean.

Increasing the confidence level while keeping same sample size.

Poverty and Dietary Calcium. Refer to Exercise 8.70

a. Determine and interpret a 95%upper confidence bound for the mean calcium intake of all people with incomes below the poverty level.

b. Compare your one-sided confidence interval in part (a) to the (twosided) confidence interval found in Exercise 8.70

Big Bucks. In the article "The \(350,000 Club" (The Business Journal, Vol. 24, Issue 14, Pp. 80-82), J. Trunelle et al. examined Arizona public-company executives with salaries and bonuses totaling over \)350,000 The following data provide the salaries, to the nearest thousand dollars, of a random sample of 20 such executives.

For a f-curve with df=6, use Table IV to find each f-value.

a. t0.10

b. t0.025

c. f0.01

Bicycle Commuting Times. A city planner working on bikeways designs a questionnaire to obtain information about local bicycle commuters. One of the questions asks how long it takes the rider to pedal from home to his or her destination. A sample of local bicycle commuters yields the following times, in minutes.

a. Find a 90%confidence interval for the mean commuting time of all local bicycle commuters in the city. (Note: The sample mean and sample standard deviation of the data are 25.82minutes and 7.71minutes, respectively.)

b. Interpret your result in part (a).

c. Graphical analyses of the data indicate that the time of 48min utes may be an outlier. Remove this potential outlier and repeat part (a). (Note: The sample mean and sample standard deviation of the abridged data are 24.76 and 6.05, respectively.)

d. Should you have used the procedure that you did in part (a)? Explain your answer.

See all solutions

Recommended explanations on Math Textbooks

View all explanations

What do you think about this solution?

We value your feedback to improve our textbook solutions.

Study anywhere. Anytime. Across all devices.