Hoping to attract more shoppers,a city builds a new public parking garage downtown.The city plans to pay for the structure through parking fees.The consultant,who advised the city on this project,randomly selected 44 weekdays.Daily fees collected averaged $126.Based on data from other parking structures,the consultant will assume parking fees at this parking garage are Normally distributed with a standard deviation of $15. If a 95% confidence interval was constructed,how would the margin of error compare to one used to create a 90% confidence interval?
A)The margin of error for the 95% confidence interval would be smaller.
B)The margin of error for the 95% confidence interval would be the same.
C)The margin of error for the 95% confidence interval would be larger.
D)This cannot be determined from the information given.

Question

Quizplus · Accepted Answer

As the confidence level increases, the margin of error also increases. Therefore, the margin of error for a 95% confidence interval will be larger than that of a 90% confidence interval.

Hoping to Attract More Shoppers,a City Builds a New Public