Question
The owner of a store created a 99% confidence interval to estimate the population mean sales per customer. The confidence interval he created was ($7.65,
The owner of a store created a 99% confidence interval to estimate the population mean sales per customer. The confidence interval he created was ($7.65, $8.50). The owner had used a random sample of 46 customer sales and assumed the population standard deviation was $2.33.
A) Check the relevant conditionsfor the owner.
B) The owner has interpreted hisconfidence interval as follows:
"0.99 of all customers in my store will have sales between$7.65to$8.50".
Do you agree/disagree with the owner's interpretation? Briefly explain.
C) Say the owner takes a new random sample of 46 different customer sales and found a smaller sample mean than the original sample. Without calculating another confidence interval, would the width of a 99% confidence interval using the new sample, be narrower, the same width, or wider than the original 99% confidence interval in the question? Briefly explain your answer to the owner.
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