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    Confidence Interval and Power of a Test

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    On 10 leases on the outer continental shelf in the Gulf of Mexico in 1984, Atlantic Richfield submitted bids. The bids are given below: 14.27, 14.60, 14.98, 15.25, 15.30, 15.42, 15.50, 15.72, 15.83, and 15.92. The x(mean)=15.279 and the s=.532. Assume that these bids are normally distributed. Place a 95% two sided confidence interval on the population mean of Arco's bids. Also, is there sufficient evidence to support the USGS claim that ARCO bids differ from the industry proxy value of 15 at 5% level of significance? What is the power of this test if Arco's true mean proxy is 15.28 with a standard deviation of 0.53?

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    Problem: On 10 leases on the outer continental shelf in the Gulf of Mexico in 1984, Atlantic Richfield submitted bids. The bids are given below: 14.27, 14.60, 14.98, 15.25, 15.30, 15.42, 15.50, 15.72, 15.83, and 15.92. The x(mean)=15.279 and the s=.532. Assume that these bids are normally distributed. Place a 95% two sided confidence interval on the population mean of Arco's bids. Also, is there ...

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