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In a recent sample of 84 used car sales costs, the sample mean was 6,425with a standard deviation of 3,156. Assume the underlying distribution is approximately normal.

a. Which distribution should you use for this problem? Explain your choice.

b. Define the random variable X炉 in words.

c. Construct a 95%confidence interval for the population mean cost of a used car. i. State the confidence interval. ii. Sketch the graph. iii. Calculate the error bound.

d. Explain what a 鈥95% confidence interval鈥 means for this study.

Short Answer

Expert verified

a. For this problem we should always use the Student's t-distribution with n-1=83the degrees of freedom, where n represents the dimensions of the sample.

b. chance variable Xis the mean number of costs from a sample of 84used car sales.

c. A 95%confidence interval for the population mean is 5.7367.114and EBM=0.689.

graph is

d. With 95%confidence actuality population mean is between5.736and7.114

Step by step solution

01

Statistical Power (a) and (b)

a) We must take the Independent samples tusing n-1=83 variables for this example , where n is de facto the big sample. once we wouldn't determine the majority's variance, we employ the Independent samples t. The common amount of charges from either a range of84 used vehicles deals is reflected by the statistical distribution X. If xand s are the expected value of a sample group from such a probability distribution with uncertain variability 2{a100(1)%statistical power on .

xt2,n1snx+ta2,n1sn

b) while t2,n1is indeed the upper 1002 number of percent of the tprobability with variables n-1,

2=10.952

=0.025

t2,n1=t0.025,83

=1.99.

To find the worth of t, we constructed a likelihood table for said Participant's t-distribution. A table depicts t-scores for variables (row) and confidence interval. The t-score is within the the chart where data matrix overlap.

The test statistic was x=6.425, with a mean difference of s=3.156, as we expected.

6.4251.993.156836.425+1.993.15683

6.4250.6896.425+0.689

02

Graph ( c)

c)

  • The95%Clfor is 5.7367.114
  • This problem's graph iswithin the following:

03

Error Bound (d)

d) - The cutoff point of such errors bound was

EBM=0.689

The precise mean analytics exam grade reflects in 95% of all standard errors computed this approach. For instance , we could expected 95of such confident areas to reflect its exact group mean if we created 100of them.

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