A research firm conducted a survey to determine the mean amount steady smokers spend on cigarettes during a week. They found the distribution of amounts spent per week followed the normal distribution with a population standard deviation of $5. A sample of 49 steady smokers revealed that = $20.
a. What is the point estimate of the population mean? Explain what it indicates.
b. Using the 95% level of confidence, determine the confidence interval for µ. Explain what it indicates.