Yasim is the proud owner of Yasim’s Sweets Coffee Shop. He is working on a new...

Yasim is the proud owner of Yasim’s Sweets Coffee Shop. He is working on a new menu and wants to assure that he pr dishes correctly. To do so, he conducted a research and found out that in East York, the average price of a 100g piece of baklava is $4.82. This figure was based on a sample of 27 similar coffee shops and restaurants with a standard deviatio $0.37. Assume the price of a 100g piece of baklava in East York is normally distributed. 1. What is the population mean? What is the best estimate? (2 mark) 2. What assumption(s) do you need to make about the shape of the distribution? State your reasoning. 3. Construct a 98% confidence interval for the population mean price of a 100g piece of baklava. Interpret the results. 4. Construct an 80% confidence interval for the population mean price of a 100g piece of baklava. Interpret the results, marks). 5. Why the confidence interval in 4. is smaller than in 3. -BIEE / Paragra

Solutions

Expert Solution

1. Population mean is not given. Thus it has to be estimated from sample mean. Thus the estimated mean is 4.82.

2. Since the distribution is assumed to be Normal. It is symmetric.

5. 98% CI is larger because in order to give more confident estimate thr range in which estimated value can fall has to be greater margin than that of 80% CI.

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orchestra answered 1 year ago

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