Question: Suppose that a manager is interested in estimating the average amount of money customers spend in her store. After sampling 36 transactions at random, she
Suppose that a manager is interested in estimating the average amount of money customers spend in her store. After sampling 36 transactions at random, she found that the average amount spent was $41.15. She then computed a 90% confidence interval to be between $38.01 and $44.29.
Which statement gives a valid interpretation of the interval?
There is a 90% chance that a randomly selected customer will spend between $38.01and$44.29.
There is a 90% chance that the mean amount spent by all customers is between $38.01and$44.29.
The store manager is 90% confident that the average amount spent by all customers is between $38.01 and$44.29.
The store manager is 90% confident that the average amount spent by the 36 sampled customers is between $38.01and$44.29.
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
