SCENARIO 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.
-Referring to Scenario 8-7,we are 99% confident that between 246.36% and 493.64% of the rooms will be rented daily in a given month.

Question

Quizplus · Accepted Answer

The confidence interval formula for a population mean is:
CI = x̄ ± Z* (s/√n)
where:
x̄ = sample mean
Z* = critical value from the standard normal distribution (for 99% confidence level, Z* = 2.576)
s = population standard deviation
n = sample size

Plugging in the given values, we get:
CI = 370 ± 2.576*(240/√25)
CI = 370 ± 2.576*(48)
CI = (246.51, 493.49)

The correct range is between 246.51% and 493.49%, not 246.36% and 493.64%. Therefore, the answer is false.

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