Explore BrainMass

Explore BrainMass

    Confidence Interval for Purchasing a Large Collection

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    2. We are interested in purchasing a large collection of Palm M515 PDAs but need to have a general idea of how much we must pay for budgetary purposes. Thus, we will construct a confidence interval on the purchase price and in doing so we will assume that selling prices are close to being normally distributed. A sample of selling prices (rounded to the nearest dollar) of the Palm M515 PDA for a one-week selling period in November are listed below.

    250 239 245 199 240 228 255 232
    225 210 225 246 240 245 225 238
    a. How do you know that you will need to construct the confidence interval using a t-distribution approach as opposed to a z-distribution?

    © BrainMass Inc. brainmass.com June 3, 2020, 9:21 pm ad1c9bdddf


    Solution Summary

    The solution answers the question below.