1. A sample of 25 MBA students taking OTM course in the Spring of 2013 shows an average income of $85,000 with the sample standard deviation of $5,000. Find the 95% confidence interval of the population mean income of MBA students.
2. According to a study, the mean (μ) price of a gallon of the regular gasoline in the United States is $4.15. A sample of 25 Chicago area gas stations shows the mean price of $4.95. The standard deviation (s) of the population is known to be $1.00. Develop a hypothesis test that can be used to determine whether the mean (μ) price of a gallon of the regular gasoline in the Chicago area is different than $4.15 (using the alpha (a) of 5%).
1. First, we use t distrubtion to answer the question because sample size=25<30. so critical value = t(24,0.025)=2.3910.
so 95% confidence interval of the ...
The solution gives detailed steps on calculating the confidence interval for population mean in a specific example. Next, a hypothesis testing for the population mean is performed and explained step by step in another example.