Answer:
Step-by-step explanation:
The confidence interval for population mean is given by :-
Given : Sample size : , which is a large sample , so we apply z-test .
Sample mean :
Standard deviation :
Significance level :
Critical value :
Now, a confidence interval at the 95% level of confidence will be :-
Answer:
a. Yes. The owner made a profit, because R > C when x = 183.
Step-by-step explanation:
(1) Calculate the revenue
R = 26.05x = 26.05 × 183 = 4767.15
(2) Calculate the cost
C = 1500 + 16.75x = 1500 + 16.75 ×183 = 1500 + 3065.25 = 4565.25
(3) Calculate the profit
P = R – C = 4767.1 – 4565.25 = 201.90
P > 0. The owner made a profit, because R > C when x = 183.
In the graphs below, the red line represents costs and the blue line represents revenues.
We see that C > R until we reach the break-even point at 162 units. After 162 units, R > C, and the business makes a profit. This, making 183 units is profitable for the company.
