Question: The Warren County Telephone Company claims in its annual report that "the typical customer spends $70 per month on local and long-distance service." A sample of 12 subscribers revealed the following amounts spent last month.
Amounts Spent Last Month:
(a) What is the point estimate of the population mean? (Round your answer to 3 decimal places)
(b) Determine the 99% confidence interval for the population mean. (Round your answer to 2 decimal places)
Note: Confidence interval is between $ and $.
(c) Is the company's claim that the "typical customer" spends $70 per month reasonable?
Hi there, here is my explanation:
b) Since n=12<30, we need to use a t ...
The solution gives a few lines' calculations for each part with some worded explanation.