Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1. A company providing mobile phone service plans has a list of phone numbers for their 125,000 customers. The company is considering adding a new

image text in transcribed
1. A company providing mobile phone service plans has a list of phone numbers for their 125,000 customers. The company is considering adding a new service that includes unlimited video streaming. as an add-on to existing data plans. A simple random sample of 256 customers is polled by the store and asked what they would be willing to pay per month to add the new service. The sample average of the responses is $10, and the sample standard deviation is $8. The histogram of the sample data is heavily skewed to the right. (a) Consider all 125,000 customers. The average of what they'd be willing to pay for the service is estimated as $ I 0 ; this estimate is likely to be off by about $i or SO. (b) Can we use the normal curve to construct confidence intervals for this problem given that the histogram of the data does not look like the normal curve? Explain why. 'lfsleL SamPlc is bfjcnouyp. acouliy-IvCLT (>100 km) 9-D W WI VSC 4m. normal owe. (c) Find the 99%-confidence interval for the average of what they'd be willing to pay. 6i. $\"_3) 38' _. lac6'5 35'6" my: 232.6 |0i2.x.5:(s.2, I13) Stat 2, Spring 2022 Assignment 5 Name: SID: (d) A company executive suggests that the monthly price of the new service should be set at the lower end of the confidence interval above, since only 1% of customers would NOT be willing to pay this much. Do you agree with this reasoning? (circle one) YES or NO, and briefly explain your

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Probability, Random Variables, And Random Processes

Authors: Hwei P Hsu

3rd Edition

0071824774, 9780071824774

More Books

Students also viewed these Mathematics questions