Question: A consumer advocacy group is concerned about the variability in the cost of prescription medication. The group surveys eight local pharmacies and obtains the following

A consumer advocacy group is concerned about the variability in the cost of prescription medication. The group surveys eight local pharmacies and obtains the following prices for a particular brand of medication:
$25.50 32.00 33.50 28.75 29.50 35.00 27.00 29.00
a. Calculate the point estimate for the population variance.
b. The group assumes that the prices represent a random sample drawn from a normally distributed population. Construct the 90% interval estimate for the population variance.
c. The group decides to begin a lobbying effort on its members' behalf if the variance in the price does not equal 4. What should the group do?

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a s 2 1047 b We use df n1 8 1 7 010 2 0051 2 095 to find 2 0057 14067 and 2 0957 2167 The 9... View full answer

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