A cruise company would like to estimate the average beer consumption to plan its

Question

A cruise company would like to estimate the average beer consumption to plan its beer inventory levels on future seven-day cruises (The ship certainly doesn't want to run out of Deer in the middle of the ocean!) The average beer consumption over 20 randomly selected seven-day cruises was 81, 652 bottles with a sample standard deviation of 4.515 bottles Complete pans a and b below. a. Construct a 90% confidence interval to estimate the average beer consumption per cruise. The 90% confidence interval to estimate the average beer consumption per cruise is from a lower limit of bottles to an upper limit of bottles.

Explanation / Answer

Confidence Interval
CI = x ± t a/2 * (sd/ Sqrt(n))
Where,
x = Mean
sd = Standard Deviation
a = 1 - (Confidence Level/100)
ta/2 = t-table value
CI = Confidence Interval
Mean(x)=81652
Standard deviation( sd )=4515
Sample Size(n)=20
Confidence Interval = [ 81652 ± t a/2 ( 4515/ Sqrt ( 20) ) ]
= [ 81652 - 1.729 * (1009.585) , 81652 + 1.729 * (1009.585) ]
= [ 79906.428,83397.572 ]

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