Answered: Do you want to own your own candy…

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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Question

Do you want to own your own candy store? Wow! With some interest in running your own business and a decent credit rating, you can probably get a bank loan on startup costs for franchises such as Candy Express, The Fudge Company, Karmel Corn, and Rocky Mountain Chocolate Factory. Startup costs (in thousands of dollars) for a random sample of candy stores are given below. Assume that the population of x values has an approximately normal distribution.

178

126

116

100

Using the sample data the following measurements were verified with a calculator:

sample mean startup cost x = $107.1 thousand and
sample standard deviation s = $30.7 thousand

(b) Find a 90% confidence interval for the population average startup costs μ for candy store franchises. (Round your answers to one decimal place.)

To answer this problem you may substitute "words" for "symbols" - e.g. "x-
bar" for or "mu" for
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Do you want to own your own candy store? Wow! With some interest in
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running your own business and a decent credit rating, you can probably
get a bank loan on startup costs for franchises such as Candy Express, The
Fudge Company, Karmel Corn, and Rocky Mountain Chocolate Factory.
Startup costs (in thousands of dollars) for a random sample of candy
stores are given below. Assume that the population of x values has an
approximately normal distribution.
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distribution? $
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of error (E)? $
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Using the sample data the following measurements were verified with a
calculator:
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o sample mean startup cost.
ost x = $107.1 thousand and
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indicating the population parameter: $
thousands <
thousands) AUSTINEJR
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o sample standard deviation s= $30.7 thousand STINEJR
Find a 90% confidence interval for the population average startup costs μ
for candy store franchises. (Round your answers to two decimal
places.)FOR THIS CONFIDENCE INTERVAL: 1. What is the point estimate?
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(indicate symbol and value)? $
2. What
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distribution will be used?(standard normal z or student's t)?
3. What is the critical value?
< $
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4. What is the standard error of the sampling
5. What is the maximal margin
6. State the confidence interval
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Features Features Normal distribution is characterized by two parameters, mean (µ) and standard deviation (σ). When graphed, the mean represents the center of the bell curve and the graph is perfectly symmetric about the center. The mean, median, and mode are all equal for a normal distribution. The standard deviation measures the data's spread from the center. The higher the standard deviation, the more the data is spread out and the flatter the bell curve looks. Variance is another commonly used measure of the spread of the distribution and is equal to the square of the standard deviation.

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