Prob 8.45 - 8.45 A survey conducted by the American...

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8.45. A survey conducted by the American Automobile Association showed that a family of four spends an average of $215.60 per day while on vacation. Based on a random sample of 64 families of four vacationing at Niagara Falls, the mean amount spent per day is $252.45 with a standard deviation of $74.50 . Assume that the population of all possible amounts spent per day by families of four is normally distributed. REMARKS: The objective after reading through the parts below is to confidently estimate the true mean daily expenditure at the 95% confidence level. By the wording of the problem, both the mean and standard deviation refer to the sample of n = 64 families of four. In particular, the standard deviation that is given is the standard deviation of the 64 sampled daily expenditures and is therefore the sample standard deviation s . Therefore, sigma is unknown. As a result, s is used as a point estimate for σ . The standard error of the mean is estimated as s / n . To find the margin
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This note was uploaded on 01/26/2011 for the course OM 210 taught by Professor Singer during the Fall '08 term at George Mason.

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Prob 8.45 - 8.45 A survey conducted by the American...

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