TABLE 8-7
A hotel chain wants to estimate the mean number of rooms rented daily in a given month.The population of rooms rented daily is assumed to be normally distributed for each month with a standard deviation of 240 rooms.During February,a sample of 25 days has a sample mean of 370 rooms.
-True or False: Referring to Table 8-7,it is possible that the 99% confidence interval calculated from the data will not contain the population mean number of rooms rented daily in a given month.

Question

Quizplus · Accepted Answer

Looking at Table 8-7, with a sample size of 25 and a 99% confidence level, the t-score for the interval calculation is 2.492. The margin of error would be 2.492*(240/sqrt(25)) = 239.04, and the confidence interval would be (370-239.04, 370+239.04) = (130.96, 609.04). Based on this interval, it is possible that the population mean falls outside of this range, so the statement is true.

TABLE 8-7 a Hotel Chain Wants to Estimate the Mean Number of Number