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A pharmaceutical company operates retail pharmacies in 10 easten states. Recentlty, the company's internal audit department selected a random sample of n= 300 prescriptions issued throughout the system. The objective of the sampling was to estimate the average dollar value of all prescriptions issued by the company. The data collected were x = $13.34 and s = 3.00. Complete parts a and b below. a. The 90% confidence interval estimate for the true average sales value for prescriptions issued by the company is from $ to $. You are asked to interpret the meaning of this confidence interval by choosing the correct answer below: O A. The company believes with 90% confidence that the sample mean prescription amount is between these two amounts. O B. The company believes that the true mean prescription amount falls between these two values 90% of the time. C. There is a 0.90 probability that the true mean prescription amount is between these two values. D. The company believes with 90% confidence that the true mean prescription amount is between these two amounts.

A pharmaceutical company operates retail pharmacies in 10 easten states. Recentlty, the company's internal audit department selected a random sample of n= 300 prescriptions issued throughout the system. The objective of the sampling was to estimate the average dollar value of all prescriptions issued by the company. The data collected were x = $13.34 and s = 3.00. Complete parts a and b below. a. The 90% confidence interval estimate for the true average sales value for prescriptions issued by the company is from $ to $. You are asked to interpret the meaning of this confidence interval by choosing the correct answer below: O A. The company believes with 90% confidence that the sample mean prescription amount is between these two amounts. O B. The company believes that the true mean prescription amount falls between these two values 90% of the time. C. There is a 0.90 probability that the true mean prescription amount is between these two values. D. The company believes with 90% confidence that the true mean prescription amount is between these two amounts.

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter10: Statistics
Section10.4: Distributions Of Data
Problem 19PFA
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A pharmaceutical company operates retail pharmacies in 10 eastern states. Recently, the company's internal audit department selected a random sample of n= 300 prescriptions issued throughout the system. The objective of the sampling was to estimate the average dollar value of all prescriptions issued by the company. The data collected were x= $13.34 and s= 3.00. Complete parts a and b below. a. The 90% confidence interval estimate for the true average sales value for presoriptions issued by the company is from $ to $ You are asked to interpret the meaning of this confidence interval by choosing the correct answer below: O A. The company believes with 90% confidence that the sample mean prescription amount is between these two amounts. O B. The company believes that the true mean prescription amount falls between these two values 90% of the time. C. There is a 0.90 probability that the true mean prescription amount is between these two values. OD. The company believes with 90% confidence that the true mean prescription amount is between these two amounts. b. One of its retail outlets recently reported that it had monthly revenue of $7,074 from 537 prescriptions. Are such results to be expected? Should that retail outlet be audited? When the population mean is at the upper limit of the 90% confidence interval computed in part a, the upper limit of the 90% confidence interval for the expected total monthly revenue for 537 prescriptions would be $ When the population mean is at the lower limit of the 90% confidence interval computed in part a, the lower limit of the 90% confidence interval for the expected total monthly revenue for 537 prescriptions would be $. Since this outlet reported sales of $7,074 from 537 prescriptions, there is reason to believe that this is out of line. The retail outlet be audited.
Transcribed Image Text:A pharmaceutical company operates retail pharmacies in 10 eastern states. Recently, the company's internal audit department selected a random sample of n= 300 prescriptions issued throughout the system. The objective of the sampling was to estimate the average dollar value of all prescriptions issued by the company. The data collected were x= $13.34 and s= 3.00. Complete parts a and b below. a. The 90% confidence interval estimate for the true average sales value for presoriptions issued by the company is from $ to $ You are asked to interpret the meaning of this confidence interval by choosing the correct answer below: O A. The company believes with 90% confidence that the sample mean prescription amount is between these two amounts. O B. The company believes that the true mean prescription amount falls between these two values 90% of the time. C. There is a 0.90 probability that the true mean prescription amount is between these two values. OD. The company believes with 90% confidence that the true mean prescription amount is between these two amounts. b. One of its retail outlets recently reported that it had monthly revenue of $7,074 from 537 prescriptions. Are such results to be expected? Should that retail outlet be audited? When the population mean is at the upper limit of the 90% confidence interval computed in part a, the upper limit of the 90% confidence interval for the expected total monthly revenue for 537 prescriptions would be $ When the population mean is at the lower limit of the 90% confidence interval computed in part a, the lower limit of the 90% confidence interval for the expected total monthly revenue for 537 prescriptions would be $. Since this outlet reported sales of $7,074 from 537 prescriptions, there is reason to believe that this is out of line. The retail outlet be audited.
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