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1. A. Monthly electric bill is normally distributed. The average monthly bill of

ID: 3247916 • Letter: 1

Question

1.

A. Monthly electric bill is normally distributed. The average monthly bill of a random sample of 16 residents of a city is $130 with a standard deviation of $40. Construct a 90% confidence interval or the can monthly electric bills of all residents. Use exactly two decimal places for your answers.

B.) Annual income of electricans is normally distributed. A random sample of 25 electricians showed an average yearly income of $99,000 with a standard deviation of $20,000. Build a 95% confidence interval for the average yearly income of all electricians. No decimal place is required

Explanation / Answer

A) n=16 , mean is 130 and sd is 50

z for 90% confidence is 1.645

thus, the lower limit of confidence interval is 130-50*1.645/sqrt(16)=109.44

the upperlimit of confidence is 130+50*1.645/sqrt(16)=150.56

B) n is 25, mean is 99000 and sd is 20000

z for 95% confidence is 1.96

thus lower limit is 99000-20000*1.96/sqrt(25)=91160

upper limit is 99000+20000*1.96/sqrt(25)=106840