Question: 7. Illowsky et al,pg 456; #112. In a recent sample of 84 used car sales costs, the sample mean was $6,425 with a standard deviation

7. Illowsky et al,pg 456; #112.

In a recent sample of 84 used car sales costs, the sample mean was $6,425 with a standard deviation of $3,156. Assume the underlying distribution is approximately normal.

a. Which distribution should you use for this problem? Explain your choice.

b. Define the random variable X^-- in words.

c. Construct a 95% confidence interval for the population mean cost of a used car.

i. State the confidence interval.

ii. Sketch the graph.

iii. Calculate the error bound.

d. Explain what a 95% confidence interval means for this study.

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