Suppose that, for budget planning purposes, the city in the previous exercise needs a better estimate of the mean daily income from parking fees.a) Someone suggests that the city use its data to create a 95% confidence interval instead of the 90% interval first created. How would this interval be better for the city? (You need not actually create the new interval.)b) How would the 95% interval be worse for the planners?c) How could they achieve an interval estimate that would better serve their planning needs?

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Answered: Suppose that, for budget planning…

18th Edition

ISBN:9780079039897

Author:Carter

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Chapter10: Statistics

Section10.6: Summarizing Categorical Data

Problem 23PPS

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Suppose that, for budget planning purposes, the city in the previous exercise needs a better estimate of the mean daily income from parking fees.

a) Someone suggests that the city use its data to create a 95% confidence interval instead of the 90% interval first created. How would this interval be better for the city? (You need not actually create the new interval.)
b) How would the 95% interval be worse for the planners?
c) How could they achieve an interval estimate that would better serve their planning needs?

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