Bob Nale is the owner of Nale’s Quick Fill. Bob would like to estimate the mean number of gallons of gasoline sold to his customers. Assume the number of gallons sold follows the normal distribution with a population standard deviation of 2.50 gallons. From his records, he selects a random sample of 70 sales and finds the mean number of gallons sold is 7.80. What is the point estimate of the population mean? (Round your answer to 2 decimal places.) Develop a 98% confidence interval for the population mean. (Use z Distribution Table.) (Round your answers to 2 decimal places.)
Continuous Probability Distributions
Probability distributions are of two types, which are continuous probability distributions and discrete probability distributions. A continuous probability distribution contains an infinite number of values. For example, if time is infinite: you could count from 0 to a trillion seconds, billion seconds, so on indefinitely. A discrete probability distribution consists of only a countable set of possible values.
Normal Distribution
Suppose we had to design a bathroom weighing scale, how would we decide what should be the range of the weighing machine? Would we take the highest recorded human weight in history and use that as the upper limit for our weighing scale? This may not be a great idea as the sensitivity of the scale would get reduced if the range is too large. At the same time, if we keep the upper limit too low, it may not be usable for a large percentage of the population!
Bob Nale is the owner of Nale’s Quick Fill. Bob would like to estimate the
- What is the point estimate of the population mean? (Round your answer to 2 decimal places.)
- Develop a 98% confidence interval for the population mean. (Use z Distribution Table.) (Round your answers to 2 decimal places.)
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