Hoping to lure more shoppers downtown, a city builds a new public parking garage

Question

Hoping to lure more shoppers downtown, a city builds a new public parking garage in the central business district. The city plans to pay for the structure through parking fees. For a random sample of 45 weekdays, daily fees collected averaged $126, with standard deviation of $14. Complete parts a through c below. a) Find a 95% confidence interval for the mean daily income this parking garage will generate. The 95% confidence interval for the mean daily income is ($127.33,$136.67). Round to two decimal places as needed.) b) Explain in context what this confidence interval means. Choose the correct answer below. A. There is 95% confidence that the daily income for all weekdays falls in the interval. B. ° C. O D. There is 95% confidence that the daily income for a weekday falls in the interval. There is 95% confidence that the interval contains the mean daily income. There is 95% confidence that the mean daily income will always fall in the interval. c) The consultant who advised the city on this project predicted that parking revenues would average $124 per day. Based on your confidence interval, what do you think of the consultant's prediction? Why? Since the 95% confidence interval A. Contains 0 B. Does not contain $124, the consultant's prediction is O A. Not Plausible B. Plausible Click to select your answer and then click Check Answer.

Explanation / Answer

(b) A; Reason: interpretation of confidence interval supports this

(c) it is the worst prediction as (B) CI does not contain; the consultant's prediction is (A) not plausible.

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