Chapter 8.2, Problem 16P

In Problems 13-19, assume that the population of x values has an approximately normal distribution.

Kranchi.se: Candy Store Do you want to own your own candy store?

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. KarmelCorn, and Rocky Mountain Chocolate Factory Startup costs (in thousands of dollars) for a random sample of candy stores are given below (Source: Entrepreneur Magazine. Vol. 23. No. 10):

9517312995759411610085

(a) Use a calculator with mean and sample standard deviation keys to verify that $$ thousand dollars and $s=29.4$ thousand dollars.

(b) Find a $90\%$ confidence interval for the population average startup costs $\mu$ for candy store franchises.

(c) Interpretation What does the confidence interval mean in the context of this problem?