The owner of a currency exchange bureau on an airport wishes to estimate the mean value of cash necessary for the exchange of PLN and EUR. Experience tells the owner that the demand for euro is distributed normally, with a standard deviation equal to 4 (thousand PLN). Having observed the demand for 10 days, the owner obtained a mean of 24.4 ( thousand PLN). Calculate the realization of the confidence interval for the expected demand with a confidence level of 0.90.

The owner of a currency exchange bureau on an airport wishes to estimate the mean value of cash necessary for the exchange of PLN and EUR. Experience tells the owner that the demand for euro is distributed normally, with a standard deviation equal to 4 (thousand PLN). Having observed the demand for 10 days, the owner obtained a mean of 24.4 ( thousand PLN). Calculate the realization of the confidence interval for the expected demand with a confidence level of 0.90.

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter5: Business And Economic Forecasting

Section: Chapter Questions

Problem 9E: Savings-Mart (a chain of discount department stores) sells patio and lawn furniture. Sales are...

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