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 the average number of rooms rented daily in a given month is somewhere between 246.36 and 493.64.

Question

Quizplus · Accepted Answer

Using the formula for a confidence interval for the mean with a known population standard deviation and a 99% confidence level, we get:

x̄ ± z* (σ/√n)
370 ± 2.576 * (240/√25)
370 ± 2.576 * 48
370 ± 123.89

So the 99% confidence interval for the mean number of rooms rented daily in a given month is (370-123.89, 370+123.89) or (246.11, 493.89). Therefore, the statement is true and the answer is A.

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