Question: A bottled water distributor wants to estimate the amount of water contained in 1 gallon bottles purchased from a nationally known water bottling company. The

A bottled water distributor wants to estimate the amount of water contained in 1 gallon bottles purchased from a nationally known water bottling company. The water bottling company’s specifications state that the standard deviation of the amount of water is equal to 0.02 gallon. A random sample of 50 bottles is selected, and the sample mean amount of water per 1 gallon bottle is 0.995 gallon.

a. Construct a 99% confidence interval estimate for the population mean amount of water included in a 1 gallon bottle.

b. On the basis of these results, do you think that the distributor has a right to complain to the water bottling company? Why?

c. Must you assume that the population amount of water per bottle is normally distributed here? Explain.

d. Construct a 95% confidence interval estimate. How does this change your answer to (b)?

Step by Step Solution

★★★★★

3.45 Rating (168 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

a Xbar Z n 0995 258 002 50 09877 10023 b Since the value of ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

494-M-S-P-E (431).docx

120 KBs Word File

Students Have Also Explored These Related Statistics Questions!

Casper's utility function is u(x, y) = 3x + y, where x is his consumption of cocoa and y is his consumption of cheese. If the total cost of x units of cocoa is $5, the price of cheese is $10, and...

A bottled water distributor wants to determine whether the mean amount of water contained in 1 gallon bottles purchased from a nationally known water bottling company is actually 1 gallon. You know...

Construct a 90% confidence interval estimate for the population mean given the following values: -=70 = 15 n=65

A bottled water distributor wants to estimate the amount of water contained in 1 1-gallon bottles purchased from a nationally known water bottling company. The water bottlingcompany's specifications...

A bottled water distributor wants to estimate the amount of water contained in 1 1 -gallon bottles purchased from a nationally known water bottling company. The water bottlingcompany's specifications...

A bottled water distributor wants to estimate the amount of water contained in 1 -gallonbottles purchased from a nationally known water bottling company. The water bottling company's specifications...

A bottled water distributor wants to estimate the amount of water contained in 1-galon bottles purchased from a nationally known water bottling company. The water bottling company's specifications...

A bottled water distributor wants to estimate the amount of water contained in 1-gallon bottles purchased from a nationally known water bottling company. The water bottling company's specications...

2) If X=85, =11, and n=69, construct a 99% confidence interval estimate of the population mean, . enter your response here enter your response here (Round to two decimal places as needed.) 3) A...

a. An 8%, five-year bond yields 6%. If the yield remains unchanged, what will be its price one year hence? Assume annual coupon payments. b. What is the total return to an investor who held the bond...

Why, in your opinion, has GE been so successful in integrating the management science approach with less quantitative approaches to management?

When is the deadline for filing and paying the Normal Corporate Income Tax (NCIT)? Question 9Answer a. On or before the last day of the taxable year b. On or before the 15th day of the second month...

An employers obligations under workplace health and safety laws are owed to (a) employees while they are on the business premises. (b) employees who ordinarily work in premises not controlled by the...

Suppose that the price of a non-dividend-paying stock is $32, its volatility is 30%, and the risk-free rate for all maturities is 5% per annum. Use DerivaGem to calculate the cost of setting up the...

A stock price is currently $40. Over each of the next two three-month periods it is expected to go up by 10% or down by 10%. The risk-free interest rate is 12% per annum with continuous compounding....

A stock price is currently $80. It is known that at the end of four months it will be either $75 or $85. The risk-free interest rate is 5% per annum with continuous compounding. What is the value of...

An explanation would be very helpful A 98% confidence interval for the average weight of rabbits (in kilogram) in a certain park is (4.6, 8.2). Which of the following statements is TRUE? Select one:...

You are evaluating the project with cash inflows as shown below. Your boss has asked you to calculate the project's NPV. You don't know the project's initial cost, but you have been informed that the...

You sold a car and accepted a note with the following cash flow stream as your payment. What was the effective price you received for the car assuming an interest rate of 13.5%? Years: 0 1 2 3 4...