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, it is possible that the 99% confidence interval calculated from the data will not contain the population mean number of rooms rented daily in a given month.

Question

Quizplus · Accepted Answer

Looking at Table 8-7, for a sample size of 25 and a 99% confidence level, the t-score (using a two-tailed test) is 2.787. The margin of error can be calculated as 2.787 * (24/sqrt(25)) = 13.414. Therefore, the 99% confidence interval for the population mean is (37 - 13.414, 37 + 13.414) = (23.586, 50.414). It is possible that the true population mean falls outside of this interval, so the answer is A.

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