Question
Executives at Sale Mart Supermarket claim that a typical family of four spends $200 weekly on routine, non-holiday, grocery purchases. According to published industry standards,
Executives at Sale Mart Supermarket claim that a typical family of four spends $200 weekly on routine, non-holiday, grocery purchases. According to published industry standards, the population standard deviation is $25.
Stuyvesant, yet another stats intern at corporate headquarters, wonders if that original claim by the executives is simply inaccurate, without further specifications. As a project, he collects from store sales receipts a simple random sample (SRS) of size 225. The sample mean for the weekly grocery purchases for a family of four is $196. He is defining as rare, or unusually extreme, any sample mean that is in either the bottom 1% or the top 1% of all possible sample means, for a total of 2%; hence, he is testing at the 2% level of significance. What conclusion should Stuyvesant draw, based on the available evidence?
What is the lower bound and upper bound of the confidence interval,expressed to two decimal places without insignificant digits?
Do not include a dollar sign.
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