5) randomly selected gas stations from a Assume that the The following data shows the gas prices from certain city. gas prices (in $) are normally distributed. 2.25 2.30 2.50 2.25 2.39 2.28 2.25 2.00 2.42 2.46 2.39 2.45 2.3 2.66 2.43 2.50 i) Construct 95% confidence interval for the average gas price of this city, and interpret the confidence interval. ii) Construct 99% confidence interval for the average gas price of this city, and interpret the confidence interval. iii) Compare the above two confidence intervals. What is the relationship between confidence level and the width of the confidence intervals?

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5)
randomly selected gas stations from a
The following data shows the gas prices from
certain city.
Assume that the
gas prices (in $) are normally distributed.
2.25 2.30
2.50 2.25
2.39
2.28
2.25
2.00
2.42
2.46
2.39
2.45
2.3
2.66
2.43
2.50
i) Construct 95% confidence interval for the average
gas price of this city, and interpret the confidence
interval.
ii) Construct 99% confidence interval for the average
gas price of this city, and interpret the confidence
interval.
iii)
Compare the above two confidence intervals.
What is the relationship between confidence level and
the width of the confidence intervals?
Transcribed Image Text:5) randomly selected gas stations from a The following data shows the gas prices from certain city. Assume that the gas prices (in $) are normally distributed. 2.25 2.30 2.50 2.25 2.39 2.28 2.25 2.00 2.42 2.46 2.39 2.45 2.3 2.66 2.43 2.50 i) Construct 95% confidence interval for the average gas price of this city, and interpret the confidence interval. ii) Construct 99% confidence interval for the average gas price of this city, and interpret the confidence interval. iii) Compare the above two confidence intervals. What is the relationship between confidence level and the width of the confidence intervals?
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