1. A city municipal board builds a new parking and plans to pay for the building through parking fees. The daily average fees collected during 50 days is Rs. 75,000/- with standard deviation of Rs. 750/-.
2. Obtain a 90% confidence interval of mean daily income.
3. The consultant who advised the municipal board on this project predicted that the parking would generate average revenue of Rs. 100,000/- per day. On the basis of your confidence interval, do you think the consultant was correct?
4. Someone suggests to obtain 95% confidence interval instead of 90%. Would this be better; why or why not?
5. How can they obtain an interval estimate of true mean that would better serve the planning needs?
6. How many days' data should be collected to have 95% confidence of estimating the true mean to be within Rs. 500/-?