Question

Small Mean Problem. Grandfather clocks have a particular market in auctions.   You are given a random sample of 20 purchases of grandfather clocks at auctions in Pennsylvania. The sample statistics are:

• Mean = $1,343.04
• Std Dev = $414.04
• C.V. = 30.83
• N = 20

You are asked to create a 90% Confidence Interval around the price for this sample.  

The Upper Value for this confidence interval is? I just want the answer. Use 3 decimal places for your answer and use the proper rules of rounding.

Answer 1

The Upper Value for this confidence interval is = 1503.127

[ interpretation:-

here, as the sample sd is known and sample is small we will use t test for mean.

i am using minitab to solve the problem.

steps:-

stat basic statistics 1 sample t select summarized data from the drop down menu in sample size type 20,in sample mean type 1343.04, in standard deviation type 414.04 options in confidence level type 90 okok.

to round off your value to desired decimal places right click on the value decimal places select your desired decimal places.

your needed output be:-

90% CI for μ

(1182.953, 1503.127)

]

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