Question
A pharmaceutical company operates retail pharmacies in 10 eastern states. Recently, the company's internal audit department selected a random sample of n= 300 prescriptions
A pharmaceutical company operates retail pharmacies in 10 eastern states. Recently, the company's internal audit department selected a random sample of n= 300 prescriptions issued throughout the system. The objective of the sampling was to estimate the average dollar value of all prescriptions issued by the company. The data collected were x = $14.37 and s = 3.50. Complete parts a and b below. a. The 90% confidence interval estimate for the true average sales value for prescriptions issued by the company is from $ to $ (Round to the nearest cent- 2 decimal places. Use ascending order.) You are asked to interpret the meaning of this confidence interval by choosing the correct answer below: A. The company believes that the true mean prescription amount falls between these two values 90% of the time. B. There is a 0.90 probability that the true mean prescription amount is between these two values. C. The company believes with 90% confidence that the true mean prescription amount is between these two amounts. D. The company believes with 90% confidence that the sample mean prescription amount is between these two amounts. b. One of its retail outlets recently reported that it had monthly revenue of $7,402 from 523 prescriptions. Are such results to be expected? Should that retail outlet be audited? (Round to the nearest cent as needed.) When the population mean is at the upper limit of the 90% confidence interval computed in part a, the upper limit of the 90% confidence interval for the expected total monthly revenue for 523 prescriptions would be $ . When the population mean is at the lower limit of the 90% confidence interval computed in part a, the lower limit of the 90% confidence interval for the expected total monthly revenue for 523 prescriptions would be $. Since this outlet reported sales of $7,402 from 523 prescriptions, there is to believe that this is out of line. The retail outlet be audited. reason The data below represents the overall miles per gallon (MPG) of 2008 SUVs priced under $30,000. Complete parts a and b below. 22, 18, 20, 21, 19, 18, 17, 18, 21, 20, 18, 16, 20, 18, 16, 17, 17, 17, 16, 21, 18, 21 a. Construct a 90% confidence interval estimate for the population mean miles per gallon of 2008 SUVs priced under $30,000, assuming a normal distribution. (Round to two decimal places as needed.) b. Interpret the interval constructed in (a). Choose the correct answer below. A. With 90% confidence, the mean miles per gallon in the population of 2008 SUVs is somewhere in the interval. B. With 90% confidence, the mean miles per gallon in the population of 2008 SUVs is the sample mean. C. With 90% confidence, the mean miles per gallon in the sample of 2008 SUVs is the population mean. D. With 90% confidence, the mean miles per gallon in the sample of 2008 SUVs is somewhere in the interval.
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