The 2014-15 Consumer Expenditure Survey for the Baltimore Metropolitan area provided information on average annual expenditures. Use
Question:
The 2014-15 Consumer Expenditure Survey for the Baltimore Metropolitan area provided information on average annual expenditures. Use a sample size of 100 for each of the following problems.
a. Mean spent on food at home = $4,502. Assume that the population standard deviation equals $700.
(1) Compute a 95% confidence interval and calculate the confidence interval width.
(2) Compute a 99% confidence interval and calculate the confidence interval width.
b. Mean spent on food away from home = $3,278. Assume that the population standard deviation equals $650.
(1) Compute a 95% confidence interval and calculate the confidence interval width.
(2) Compute a 99% confidence interval and calculate the confidence interval width.
c. Mean spent on entertainment = $2,790. Assume that the population standard deviation equals $500.
(1) Compute a 95% confidence interval and calculate the confidence interval width.
(2) Compute a 99% confidence interval and calculate the confidence interval width.
d. Mean spent on tobacco products and smoking supplies = $328. Assume that the population standard deviation equals $100.
(1) Compute a 95% confidence interval and calculate the confidence interval width.
(2) Compute a 99% confidence interval and calculate the confidence interval width.
e. Look at the results of a-d and present a summary statement regarding the relationship between the 95% confidence interval and 99% confidence interval for the same set of data.
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