Question

In: Statistics and Probability

CONSTRUCT A 90% CONFIDENCE INTERVAL OF THE AVERAGE GASOLINE PRICE PER GALLON BASED ON A RECENT...

CONSTRUCT A 90% CONFIDENCE INTERVAL OF THE AVERAGE GASOLINE PRICE PER GALLON BASED ON A RECENT SAMPLE OF 48 STATIONS. THE SAMPLE MEAN WAS $2.63. ASSUME THE POPULATION STANDARD DEVIATION IS $0.31.

Solutions

Expert Solution

Solution :

Given that,

Point estimate = sample mean = = 2.63

Population standard deviation =    = 0.31
Sample size = n =48

At 90% confidence level the z is

= 1 - 90% = 1 - 0.90 = 0.1

/ 2 = 0.1 / 2 = 0.05

Z/2 = Z0.05 = 1.645 ( Using z table )


Margin of error = E = Z/2    * ( /n)

= 1.645 * (0.31 /  48 )

= 0.07
At 90% confidence interval mean
is,

- E < < + E
2.63 - 0.07 <   < 2.63 + 0.07

(2.56 , 2.70)


Related Solutions

Oil and Gas Prices The average gasoline price per gallon (in cities) and the cost of...
Oil and Gas Prices The average gasoline price per gallon (in cities) and the cost of a barrel of oil are shown below for a random selection of weeks in 2015 . Oil ( $ ) Gasoline ( $ ) 55.78 2.654 41.96 2.269 52.08 2.445 57.28 2.710 58.15 2.805 67.59 3.071 The correlation coefficient for the data is =r0.978 and =α0.01 . Should regression analysis be done? The regression analysis should not be done. The regression analysis should be...
Oil and Gas Prices The average gasoline price per gallon (in cities) and the cost of...
Oil and Gas Prices The average gasoline price per gallon (in cities) and the cost of a barrel of oil are shown below for a random selection of weeks in 2015. Oil ($) Gasoline ($) 55.78 2.654 41.96 2.269 52.08 2.445 57.28 2.710 58.15 2.805 67.59 3.071
Oil and Gas Prices The average gasoline price per gallon (in cities) and the cost of...
Oil and Gas Prices The average gasoline price per gallon (in cities) and the cost of a barrel of oil are shown below for a random selection of weeks from 2015. Oil $47.79 $44.62 $81.08 $43.67 $40.58 $48.64 Gasoline 2.638 2.636 2.944 2.528 2.623 2.682 1) The correlation coefficient for the data is r = 0.951 and a = 0.01. Should regression analysis be done? a) The regression analysis should not be done or b) The regression analysis should be...
A national study shows that in 2006 the average price of gasoline was $2.51 per gallon....
A national study shows that in 2006 the average price of gasoline was $2.51 per gallon. The population standard deviation was shown to be $0.61. A 2007 random study of 81 Maryland gas stations showed the average price of gasoline per gallon to be $2.73. Is there significant evidence to suggest that the average price of a gallon of gasoline is more in Maryland in 2007? Test at the 10% significance level.
If n = 300 and X = 90, construct a 90% confidence interval estimate of the...
If n = 300 and X = 90, construct a 90% confidence interval estimate of the population proportion. (answer) < pie < (answer) Note: the "< " listed above are suppos to be underlined.  
At one point the average price of regular unleaded gasoline was ​$3.543.54 per gallon. Assume that...
At one point the average price of regular unleaded gasoline was ​$3.543.54 per gallon. Assume that the standard deviation price per gallon is ​$0.080.08 per gallon and use​ Chebyshev's inequality to answer the following. ​(a) What percentage of gasoline stations had prices within 33 standard deviations of the​ mean? ​(b) What percentage of gasoline stations had prices within 2.52.5 standard deviations of the​ mean? What are the gasoline prices that are within 2.52.5 standard deviations of the​ mean? ​(c) What...
At one point the average price of regular unleaded gasoline was $3.53 per gallon. Assume that...
At one point the average price of regular unleaded gasoline was $3.53 per gallon. Assume that the standard deviation price per gallon is ​$0.07 per gallon and use​ Chebyshev's inequality to answer the following. ​(a) What percentage of gasoline stations had prices within 3 standard deviations of the​ mean? ​(b) What percentage of gasoline stations had prices within 2.5 standard deviations of the​ mean? What are the gasoline prices that are within 2.5 standard deviations of the​ mean? ​(c) What...
The average price for a gallon of gasoline in the United States is 3.75 and in...
The average price for a gallon of gasoline in the United States is 3.75 and in Russia it is 3.37. Assume these averages are the population means in the two countries and that the probability distributions are normally distributed with a standard deviation of .25 in the United States and a standard deviation of .20 in Russia. a. What is the probability that a randomly selected gas station in the United States charges less than ________ per gallon (to 4...
The average price for a gallon of gasoline in the United States is $3.74 and in...
The average price for a gallon of gasoline in the United States is $3.74 and in Russia it is $3.4. Assume these averages are the population means in the two countries and that the probability distributions are normally distributed with a standard deviation of $0.25 in the United States and a standard deviation of $0.20 in Russia. a. What is the probability that a randomly selected gas station in the United States charges less than $3.65 per gallon (to 4...
Out of 400 people sampled, 252 had kids. Based on this, construct a 90% confidence interval...
Out of 400 people sampled, 252 had kids. Based on this, construct a 90% confidence interval for the true population proportion of people with kids. As in the reading, in your calculations: --Use z = 1.645 for a 90% confidence interval --Use z = 2 for a 95% confidence interval --Use z = 2.576 for a 99% confidence interval. Give your answers to three decimals Give your answers as decimals, to three decimal places. [,]
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT