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 the average number of rooms rented daily in a given month is somewhere between 24.64 and 49.36.

Question

Quizplus · Accepted Answer

Using Table 8-7, with a sample size of 25 and a population standard deviation of 24, the t-value for a 99% confidence interval is 2.787. Using this value and the sample mean of 37, we can calculate the margin of error to be 12.36. Therefore, the confidence interval for the population mean is (37 - 12.36, 37 + 12.36), which simplifies to (24.64, 49.36). So, we can be 99% confident that the true population mean of rooms rented daily falls within this interval.

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