95 is the better deal it’s only 35 more bucks and you get 150 more.
For this problem, the confidence interval is the one we are looking
for. Since the confidence level is not given, we assume that it is 95%.
The formula for the confidence interval is: mean ± t (α/2)(n-1) * s √1 + 1/n
Where:
<span>
</span>
α= 5%
α/2
= 2.5%
t
0.025, 19 = 2.093 (check t table)
n
= 20
df
= n – 1 = 20 – 1 = 19
So plugging in our values:
8.41 ± 2.093 * 0.77 √ 1 + 1/20
= 8.41 ± 2.093 * 0.77 (1.0247)
= 8.41 ± 2.093 * 0.789019
= 8.41 ± 1.65141676
<span>= 6.7586 < x < 10.0614</span>
You can see the Steps but the answer is
X > 15
It comes out to 0.8775 so it rounds to about $0.88
