SOLUTION: Exercise 7 Bob Nale is the owner of Nales Texaco GasTown. Bob would like to estimate the mean number of gallons of gasoline sold to his customers. Assume the number of gallon

Question 274006:
Exercise 7
Bob Nale is the owner of Nales Texaco GasTown. Bob would like to estimate the mean number of gallons of gasoline sold to his customers. Assume the number of gallons sold follows the normal distribution with a standard deviation of 3 gallons. From his records, he selects a random sample of 58 sales and finds the mean number of gallons sold is 8.51. (Round your answers to 2 decimal places.)
(a) The point estimate of the population mean is ?
(b) The 99 percent confidence interval for the population mean is and ?
Answer by stanbon(75887) (Show Source): You can put this solution on YOUR website!
Bob Nale is the owner of Nales Texaco GasTown. Bob would like to estimate the mean number of gallons of gasoline sold to his customers. Assume the number of gallons sold follows the normal distribution with a standard deviation of 3 gallons. From his records, he selects a random sample of 58 sales and finds the mean number of gallons sold is 8.51. (Round your answers to 2 decimal places.)
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(a) The point estimate of the population mean is ?
Ans: u = x-bar = 8.51 gallons
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(b) The 99 percent confidence interval for the population mean is and ?
E = t*s/sqrt(n)
E = invT(0.995,df=56)*3/sqrt(57) = 2.6665*3/sqrt(57) = 1.0596
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99% CI: 8.51 - 1.0596 < u < 8.51 + 1.0596
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99% CI: 7.45 < u < 9.5696
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Cheers,
Stan H.
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