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, a 95% confidence interval for the mean number of rooms rented daily in a given month is narrower than a 99% confidence interval.

Question

Quizplus · Accepted Answer

According to Table 8-7, as the confidence level increases, the margin of error increases as well, resulting in wider confidence intervals. Therefore, a 99% confidence interval will be wider than a 95% confidence interval.

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