Suppose that an airline conducted market research on travelpatterns by taking a

Question

Suppose that an airline conducted market research on travelpatterns by taking a simple random
sample of 400 people aged 25 and over in a certain city. Theycalculate out a 95% Confidence Interval for the
average distance traveled on vacations in the previous year. ThisConfidence Interval is 524 to 616 miles. For
each of the following determine whether each statement is true,false, or indeterminable based on the given
information. If there is not enough information to decide, whatelse would you need to know?
a) The observed sample average of the 400 distances is about 570miles.
b) The SD of the 400 distances is about 530 miles.
c) The histogram for the 400 distances is close to the normalcurve
d) The probability histogram for the sample average is close to thenormal curve.
e) A 95% Confidence Interval based on a simple random sample of 800people will be about half as wide
as one based on an srs of 400 people.

Explanation / Answer

Answer : a) The observed sample average of the 400 distances isabout 570 miles. b) The SD of the 400 distances is about 530 miles. c) The histogram for the 400 distances is close to the normal curve

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