Question #19901

In a recent sample of 84 used cars sales cost, the sample mean was $6425 with a standard deviation of $3156. Assume the underlying distribution is approximately normal. Construct a 95 % confidence interval for the population average cost of a used car

Expert's answer

to find confidence interval we need

standard deviation/ sqrt (sample size) = 3156/sqrt(84) = 344,3

finding the coefficient from t-distr. table and multiplying on previous number we get

344.3*(1.96) = 674.8

hence, confidence interval is $6425 +- $674.8

standard deviation/ sqrt (sample size) = 3156/sqrt(84) = 344,3

finding the coefficient from t-distr. table and multiplying on previous number we get

344.3*(1.96) = 674.8

hence, confidence interval is $6425 +- $674.8

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