Question
In: Statistics and Probability
Warren County Telephone Company claims in its annual report that “the typical customer spends $61 per...
Warren County Telephone Company claims in its annual report that “the typical customer spends $61 per month on local and long-distance service.” A sample of 12 subscribers revealed the following amounts spent last month. $63 $67 $65 $68 $60 $65 $68 $62 $64 $63 $54 $67
a. What is the point estimate of the population mean? (Round your answer to 3 decimal places.)
Estimated population mean $:
b. Develop a 98% confidence interval for the population mean. (Use t Distribution Table.) (Round your answers to 3 decimal places.)
Confidence interval for the population mean $ and $
c. Is the company's claim that the "typical customer" spends $61 per month reasonable?
Yes No
Solutions
Expert Solution
From the given sample data: n=12 , 
, 
The sample mean is ,
The sample standard deviation is ,
The critical value is ,
; From t-table
a) The point estimate of the population mean is 
=63.833
b) The 98% confidence interval for the population mean is ,
c) We have , Hypothesis: 
Vs 
Here , the value $61 lies in the given 98% confidence interval
Therefore , failto reject Ho.
Conclusion : Yes, there is sufficient evidence to support the claim that the "typical customer" spends $61 per month reasonable.
orchestra answered 1 year agoRelated Solutions
Warren County Telephone Company claims in its annual report that “the typical customer spends $61 per...
Warren County Telephone Company claims in its annual report that
“the typical customer spends $61 per month on local and
long-distance service.” A sample of 12 subscribers revealed the
following amounts spent last month.
$64
$65
$64
$68
$58
$64
$68
$63
$64
$60
$54
$67
a.
What is the point estimate of the population mean?
(Round your answer to 3 decimal places.)
Estimated population mean
$
b.
Develop a 95% confidence interval for the population mean. (Use
t Distribution...
Warren County Telephone Company claims in its annual report that “the typical customer spends $60 per...
Warren County Telephone Company claims in its annual report that
“the typical customer spends $60 per month on local and
long-distance service.” A sample of 12 subscribers revealed the
following amounts spent last month. $64 $63 $63 $68 $56 $64 $68 $62
$64 $54 $54 $69
a. What is the point estimate of the population mean? (Round
your answer to 3 decimal places.)
Estimated population mean $
b. Develop a 98% confidence interval for the population mean.
(Use t Distribution...
Warren County Telephone Company claims in its annual report that "the typical customer spends $60 per...
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long-distance service." A sample of 12 subscribers revealed the
following amounts spent last month.
$63
$65
$64
$67
$56
$65
$68
$63
$64
$62
$55
$67
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Estimated population mean
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