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 24 rooms. During February, a sample of 25 days has a sample mean of 37 rooms.
-Referring to Table 8-7, we are 99% confident that between 24.64% and 49.36% of the rooms will be rented daily in a given month.

Question

Quizplus · Accepted Answer

Table 8-7 provides critical values for the t-distribution for various levels of significance and degrees of freedom. It cannot be used to calculate confidence intervals for proportions, which is what the statement in the question is attempting to do. Therefore, the statement is false. A z-test or a t-test for a mean would be appropriate to estimate the mean number of rooms rented daily in a given month.

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