Description

For this assignment, you will participate in a discussion about how to properly interpret confidence intervals. You have seen the formulas used to create these intervals, but it is equally important to know what they represent.

Scenario

• You are trying to estimate the average amount that movie theaters charge for a large bucket of popcorn at theaters in the United States. Now, of course, you can't call up every single theater in the U.S. and ask them how much they charge for a large bucket of popcorn, because that would take too much time. All you want is a good estimate, so you will create a confidence interval.
• You randomly sample 50 theaters in the United States. You ask those theaters how much they charge for a large popcorn, and you get a sample mean of $6. Then, you create a confidence interval using this data with the lower limit at $4.50 and the upper limit at $7.50.

Instructions

1. Complete the following on the Discussion Board.

• • Explain why a confidence interval would or would not be appropriate in this example.
  • In your own words, interpret the meaning of this confidence interval.
  • If you only had a sample of 10 theaters instead of 50, would a confidence interval still be appropriate? Why or why not?
  • Describe a scenario where you could use the confidence interval in your daily life.

1. Be sure to read others' posts. Respond to at least two posts. In your response, comment on the appropriate use of a confidence interval in this situation.