Attachment # 00011695 - Question_2.xlsx
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(refer to the detailed question and attachment below)
a. Is the sample size of 39 adequate using confidence level of 99% to estimate the price of a pound of potatoes so that the estimated cost is within $0.20 of cost charged by the stores in California area? Assume that the population standard deviation is $0.30. Justify your answer.b. What is the 99% confidence interval range for price of a pound of potatoes if the sample data above is used?c. What is the 95% confidence interval range for price of a pound of potatoes if the sample data above is used?d. What is the 90% confidence interval range for price of a pound of potatoes if the sample data above is used?e. Review the results from part b, c, and d and explain what happens to the range of the intervals? Answer this question in context of whether the range is getting wider or narrower as the confidence level is changed. Do the results make sense? Explain why, or why not.f. Comment on precision of the confidence intervals computed in part b, c, and d. Answer this question with respect to which of the three confidence intervals computed in part b, c, and d has a higher precision and why.g. Based on the confidence interval computed in part b, if the decision maker wants to maintain the same confidence level, i.e. 99%, however, it is desired to improve the precision of this confidence interval, what option the decision maker has to improve the precision and still maintain the same confidence level?
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  1. rani.stat12
    Tutorial # 00712553 Posted By: rani.stat12 Posted on: 11/02/2018 05:58 PM
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    The sample size is sufficient. B. What is the 99% confidence ...
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