Hoping to lure more shoppers downtown, a city builds a new public parking garage
ID: 3057712 • Letter: H
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 two-month period (43 weekdays), daily fees collected averaged $1,258, with a standard deviation of $130. Complete parts a through d.
(a) What assumptions must you make in order to use these statistics for inference? Select all that apply.
A. The sample of 43 weekdays is representative of all days.
B. The distribution of sample weekday parking fees is nearly normal.
C. The sample is a simple random sample from the relevant population.
D. The data from the sample are not extremely skewed. The sample size is larger than 10 times the squared skewness and 10 times the absolute value of the kurtosis.
(b) Find a 90% confidence interval for the mean daily income this parking garage will generate, rounded appropriately for your message.
The 90% confidence interval for the mean daily income is $___ to $___. (Round to the nearest dollar.)
(c) The consultant who advised the city on this project predicted that parking revenues would average $1294 per day. On the basis of your confidence interval, do you think the consultant was correct? Why or why not?
Since the 90% confidence interval (contains, does not contain) the predicted average, the consultant's prediction is probably (accurate, not accurate).
(d) Give a 90% confidence interval for the total revenue earned during five weekdays.
The 90% confidence interval for the total revenue earned during five weekdays is $___ to $____. (Round to the nearest dollar as needed.)
Explanation / Answer
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 two-month period (43 weekdays), daily fees collected averaged $1,258, with a standard deviation of $130. Complete parts a through d.
(a) What assumptions must you make in order to use these statistics for inference? Select all that apply.
A. The sample of 43 weekdays is representative of all days.
B. The distribution of sample weekday parking fees is nearly normal.
C. The sample is a simple random sample from the relevant population.
D. The data from the sample are not extremely skewed. The sample size is larger than 10 times the squared skewness and 10 times the absolute value of the kurtosis.
(b) Find a 90% confidence interval for the mean daily income this parking garage will generate, rounded appropriately for your message.
The 90% confidence interval for the mean daily income is $___ to $___. (Round to the nearest dollar.)
(c) The consultant who advised the city on this project predicted that parking revenues would average $1294 per day. On the basis of your confidence interval, do you think the consultant was correct? Why or why not?
Since the 90% confidence interval (contains, does not contain) the predicted average, the consultant's prediction is probably (accurate, not accurate).
(d) Give a 90% confidence interval for the total revenue earned during five weekdays.
The 90% confidence interval for the total revenue earned during five weekdays is $___ to $____. (Round to the nearest dollar as needed.)
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