In: Statistics and Probability
The manager of The Cheesecake Factory in Boston reports that on six randomly selected weekdays, the number of customers served was 120, 130, 100, 205, 185, and 220. She believes that the number of customers served on weekdays follows a normal distribution.
Construct the lower bound of the 90% confidence interval for the average number of customers served on weekdays. (Round the sample standard deviation to 2 decimal places, the "t" value to 3 decimal places, and the final answer to 2 decimal places.)
Solution:
x | x2 |
120 | 14400 |
130 | 16900 |
100 | 10000 |
205 | 42025 |
185 | 34225 |
220 | 48400 |
--- | --- |
∑x=960 | ∑x2=165950 |
Mean ˉx=∑xn
=120+130+100+205+185+220/6
=960/6
=160
The sample standard is S
S =(
x2 ) - ((
x)2 / n ) n -1
=165950-(960)265
=165950-1536005
=123505
=√2470
=49.699
Degrees of freedom = df = n - 1 = 6 - 1 = 5
At 90% confidence level the z is ,
= 1 - 90% = 1 - 0.90 = 0.10
/ 2 = 0.10 / 2 = 0.05
t /2,df = t0.05,5 = 2.015
Margin of error = E = t/2,df * (s /n)
= 2.015* (49.70 / 6)
=40.88
Margin of error =40.88
The 99% confidence interval estimate of the population mean is,
- E < < + E
160- 40.88 < < 160 + 40.88
119.11 < < 200.88
(119.11, 200.88)