Econ2300homework6

Econ2300homework6 - ECON 2300 Homework Assignment #6 Be...

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ECON 2300 Homework Assignment #6 Be sure to show your work for possible partial credit. 1. A local kitchenware store periodically offers cooking classes at the back of the store. The manager is curious about the amount of money attendees spend in the store as a result of the cooking classes. A random sample of 64 cooking class attendees was surveyed over a 3-month period. The mean amount spent in the store per customer, as a result of attending a class, was $60 with a standard deviation of $25. a. Determine and interpret a 90% confidence interval for the mean amount spent per customer, as a result of attending a cooking class. Standard Error = x σ = 25/√64 = $3.13 Must use a critical t-value because the population standard deviation, σ , is not known. t .05,63 =TINV(.10,63) = 1.67 Margin of Error = 1.67 * 3.13 = $5.23 90% confidence interval estimate = [$60-5.23; $60+5.23] = [54.77; 65.23] Interpretation: It is estimated with 90% confidence that the average money spent per customers attending a cooking class is between $54,77 and $65.23.
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Econ2300homework6 - ECON 2300 Homework Assignment #6 Be...

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