Question: You would like to estimate the average amount spent on pizza annually by a UCLA undergraduate. You would like to be 95% confident that your
You would like to estimate the average amount spent on pizza annually by a UCLA undergraduate. You would like to be 95% confident that your estimate is within $5 of the true mean. A past study revealed a variance in pizza spending for this population to be 400.
- What sample size do you recommend? Show your work.
- You sample the number of undergraduates identified in your answer to part a). The sample reveals a sample mean of $400 and an estimated population standard deviation in this spending of $30. What is your realized confidence interval for the average annual spend on pizza? Show your work.
- The person who asked you to do the sample, believes that average spending is no more than $350. Provide statistical evidence of whether their belief is reasonable? Show your work and explain.
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