Answer:
99% confidence interval for the average start up cost is [76.575 , 123.425].
Step-by-step explanation:
We are given that of the 14 stores Victoria investigated, the average start up cost is 100 thousand dollars with a standard deviation of 29.1 thousand dollars.
So, the pivotal quantity for 99% confidence interval for the population average start up cost is given by;
P.Q. = ~
where, = sample average start up cost = 100 thousand dollars
= sample standard deviation = 29.1 thousand dollars
n = sample of stores = 14
= population average start up cost
<em>So, 99% confidence interval for the average start up cost, </em><em> is ;</em>
P(-3.012 < < 3.012) = 0.99
P(-3.012 < < 3.012) = 0.99
P( <
<
) = 0.99
P( <
<
) = 0.99
<u>99% confidence interval for</u> = [
,
]
= [ ,
]
= [76.575 , 123.425]
Therefore, 99% confidence interval for the population average start up cost for a candy store is [76.575 , 123.425].