Some fast-food chains offer a lower-priced combination meal in an effort to attr

Question

Some fast-food chains offer a lower-priced combination meal in an effort to attract budget-conscious customers. One chain test-marketed a burger, fries and a drink combination for $1.71. The weekly sales volume for these meals was impressive. Suppose the chain wants to estimate the average amount its customers spent on a meal at their restaurant while this combination offer was in effect. An analyst gathers the following data from sample meal totals Use these data to construct a 90% confidence interval to estimate the population mean value. Assume the amounts spent are normally distributed.

Explanation / Answer

standard deviation, s = 2.016371

standard error, SE = 2.016371/sqrt(28) = 0.381058

tcrit = 1.7033

lower limit = 5.335 - 1.7033*0.381058 = 4.686

upper limit = 5.335 + 1.7033*0.381058 = 5.984

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