STATISTICAL TECHNIQUES AND TOOLS
SAMPLING DISTRIBUTION
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
In a crash test of 15 troopers, collision repair costs are found to have a distribution that is approximately normal with a mean of $1800. Assume that the population standard deviation is $950. Construct a 99% confidence interval for the repair cost.
|
|
(1168, 2432)
|
|
|
(1397, 2204)
|
|
|
(1319, 2281)
|
|
|
None of these.
|
Explanation:
Detailed explanation-1: -The correct interpretation of a 95% confidence interval is that “we are 95% confident that the population parameter is between X and X."
Detailed explanation-2: -Calculating a C% confidence interval with the Normal approximation. ˆp±z√ˆp(1−ˆp)n, where the value of z is appropriate for the confidence level. For a 95% confidence interval, we use z=1.96, while for a 90% confidence interval, for example, we use z=1.64.
There is 1 question to complete.