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Each month the US Department of Agriculture produces the Retail Milk Prices Report. The report lists the retail prices of milk for selected cities. The
Each month the US Department of Agriculture produces the Retail Milk Prices Report. The report lists the retail prices of milk for selected cities. The December 2019 prices (dollars per gallon) for conventional whole milk for 10 US cities are listed in the accompanying table. A dairy farmer is interested in knowing the true mean December 2019 retail whole milk price for all US cities. Complete parts a through f below. Click the icon to view the data table. b. Compute a point estimate of the target parameter. (Round to three decimal places as needed.) c. What is the problem with using the normal (z) statistic to find a confidence interval for the target parameter? O A. The sample is small and the population has unknown distribution and standard deviation. O B. The z-statistic is used for confidence intervals for proportions, not means. O C. The point estimate is too large to determine an accurate z-statistic. O D. The point estimate is too large to determine an accurate t-statistic. d. Find a 99% confidence interval for the target parameter. ()(Round to three decimal places as needed.) e. Give a practical interpretation of the interval from part d. Choose the correct answer below. O A. One can be 99% confident that the sample mean December 2019 retail whole milk price for all US cities lies within the interval. O B. There is a 99% probability that the true mean December 2019 retail whole milk price for all US cities is the mean of the interval. O C. One can be 99% confident that the true mean December 2019 retail whole milk price for all cities lies at the mean of the interval. O D. One can be 99% confident that the true mean retail whole milk price for all US cities is one of the endpoints of the interval. O E. There is a 99% probability that the true mean December 2019 retail whole milk price is the mean of the interval. OF. One can be 99% confident that the true mean December 2019 retail whole milk price for all US cities lies within the interval. O G. One can be 99% confident that the true mean December 2019 retail whole milk price for all US cities is one of the endpoints of the interval. O H. One can be 99% confident that the sample mean December 2019 retail whole milk price for all US cities lies at the mean of the interval
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