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A random sample of 100 automobile owners in the state of Virginia shows that an

ID: 3179539 • Letter: A

Question

A random sample of 100 automobile owners in the state of Virginia shows that an automobile is driven on average 23, 500 kilometers per year with a standard deviation of 3900 kilometers. Assume the distribution of measurements to be approximately normal. (a) Construct a 99% confidence interval for the average number of kilometers an automobile is driven annually in Virginia. (b) What can we assert with 99% confidence about the possible size of our error if we estimate the average number of kilometers driven by car owners in Virginia to be 23.500 kilometers per year?

Explanation / Answer

a. Here =2.58

So Margin of error=z*sd/sqrt(n)=1006.2

CI=mean+/-E=23500+/-1006.2=(22493.8,24506.2)

b. We are 99% sure that this error will be less than z*sd/sqrt(n)=1006.2

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