GM is designing a new car, the Chevrolet Volt, which is expected to get 100 mpg on the highway. In trying to estimate how much people would be willing to pay for the new car, the company assesses a normal distribution for the average maximum price with mean $29,000 and standard deviation $6,000. A random sample of 30 potential buyers yields an average maximum price of $26,500 and standard deviation $3,800. Give a 95% highest-posterior-density credible set for the average maximum price a consumer would pay.
Answer to relevant QuestionsFor problem 15-54, a second sample of 60 people gives a sample mean of $27,050. Update the distribution of the population mean, and give a new HPD credible set of probability 0.95 for µ. For problem 15-5, suppose the biologists believed the proportion of infected crabs in the population was equally likely to be anywhere from 10% to 90%. Using the discrete points 0.1, 0.2, etc., construct a uniform prior ...Beer sales in a tavern are cyclical over the week, with large volume during weekend nights, lower volume during the beginning of the week, and somewhat higher volume at midweek. Explain the possible problems that could ...Refer to the situation in problem 16-24. Suppose that the following relative age frequencies in the population are known: Age Group ..... Frequency Under 10 ...... 0.10 10 to 15 ...... 0.10 16 to 18 ...... 0.05 19 to 22 ...Suppose that a discriminant analysis is carried out on a data set consisting of two groups. The larger group constitutes 125 observations and the smaller one 89. The relative sizes of the two groups are believed to reflect ...
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