Question

In: Statistics and Probability

In planning both market opportunity and production levels, being able to estimate the size of a...

In planning both market opportunity and production levels, being able to estimate the size of a market can be important. Suppose a diaper manufacturer wants to know how many diapers a one-month-old baby uses during a 24-hour period. To determine this usage, the manufacturer’s analyst randomly selects 17 parents of one-month-olds and asks them to keep track of diaper usage for 24 hours. The results are shown. Construct a 99% confidence interval to estimate the average daily diaper usage of a one-month-old baby. Assume diaper usage is normally distributed.

11 8 11 9 13 14 13
13 9 13 11 8 11 15
13 7 11



(Round the intermediate values to 3 decimal places. Round your answers to 2 decimal places.)

(blank) ≤ μ ≤ (blank)


Solutions

Expert Solution

The sample size is n = 17 . The provided sample data along with the data required to compute the sample mean and sample variance are shown in the table below:

X X2
11 121
8 64
11 121
9 81
13 169
14 196
13 169
13 169
9 81
13 169
11 121
8 64
11 121
15 225
13 169
7 49
11 121
Sum = 190 2210

The sample mean is computed as follows:

Also, the sample variance is

Therefore, the sample standard deviation s is

The number of degrees of freedom are df = 24 - 1 = 23 , and the significance level is α=0.01.

Based on the provided information, the critical t-value for α=0.01 and df = 23 degrees of freedom is t_c = 2.807

The 99% confidence for the population mean μ is computed using the following expression

Therefore, based on the information provided, the 99 % confidence for the population mean μ is

Ci = (11.176 - 1.332, 11.176 + 1.332)

CI= (9.84, 12.51)


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