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QUESTION 1 5.8a: What is the upper bound of the confidence interval? Use two decimals for your answer. Hint: See L-11 pdf and lecture, page 4-5

QUESTION 1 5.8a: What is the upper bound of the confidence interval? Use two decimals for your answer. Hint: See L-11 pdf and lecture, page 4-5

MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
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QUESTION 1 5.8a: What is the upper bound of the confidence interval? Use two decimals for your answer. Hint: See L-11 pdf and lecture, page 4-5
Transcribed Image Text:QUESTION 1 5.8a: What is the upper bound of the confidence interval? Use two decimals for your answer. Hint: See L-11 pdf and lecture, page 4-5
5.8 As part of the recruitment of new businesses, the city's economic development department wants to estimate the gross profit margin of small businesses (under $1 million in sales) currently residing in the city. A random sample of the previous years annual reports of 15 small businesses shows the mean net profit margin to be 7.2% (of sales) with a standard deviation of 12.5%. a. Construct a 99% confidence interval for the mean gross profit margin of u of all small businesses in the city. b. The city manager reads the report and states that the confidence interval for u constructed in part (a) is not valid because the data are obviously not normally distributed and thus the sample size is too small. Based on just knowing the mean and standard deviation of the sample of 15 businesses, do you think the city man- ager is valid in his conclusion about the data? Explain your answer.
Transcribed Image Text:5.8 As part of the recruitment of new businesses, the city's economic development department wants to estimate the gross profit margin of small businesses (under $1 million in sales) currently residing in the city. A random sample of the previous years annual reports of 15 small businesses shows the mean net profit margin to be 7.2% (of sales) with a standard deviation of 12.5%. a. Construct a 99% confidence interval for the mean gross profit margin of u of all small businesses in the city. b. The city manager reads the report and states that the confidence interval for u constructed in part (a) is not valid because the data are obviously not normally distributed and thus the sample size is too small. Based on just knowing the mean and standard deviation of the sample of 15 businesses, do you think the city man- ager is valid in his conclusion about the data? Explain your answer.
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