Example: Choosing the Standard Normal Distribution or the t-Distribution a) You

Question

Example: Choosing the Standard Normal Distribution or the t-Distribution a) You randomly select 25 newly constructed houses. The sample mean construction cost is $181,000 and the population standard deviation is $28,000. Assuming construction costs are normally distributed, should you use the standard normal distribution, the t-distribution, or neither to construct a 95% confidence interval for the population mean construction cost? Solution: b) In a rando m sample of 50 people, the mean body mass index (BMI) was 27.7 and the standard deviation was 6.12. Assume the body mass indexes are normally distributed. Solution:

Explanation / Answer

a) Normal distribution, since the population standard deviation is given.

b)t-distribution, since sample standard deviation is given and population s.d is unknown.

c)t-distribution, since population standard deviation is not known.

d)t-distribution, since population s.d is not known.

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