Question: Hoping to lure more shoppers downtown a city builds a

Hoping to lure more shoppers downtown, a city builds a new public parking garage in the central business district. The city plans to pay for the structure through parking fees. For a random sample of 44 week-days, daily fees collected averaged $ 126, with a standard deviation of $ 15.
a) What assumptions must you make in order to use these statistics for inference?
b) Find a 90% confidence interval for the mean daily income this parking garage will generate.
c) Explain in context what this confidence interval means.
d) Explain what 90% confidence means in this context.
e) The consultant who advised the city on this project predicted that parking revenues would average $ 128 per day. Based on your confidence interval, what do you think of the consultant’s prediction? Why?

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  • CreatedMay 15, 2015
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