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.
-True or False: Referring to Scenario 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

A confidence interval provides a range of values within which the population mean is likely to fall, but there is still a small probability (1% in this case) that the true population mean lies outside this interval.

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