Question

You are trying to estimate the average amount of money people spend on purchasing accessories for the their mobile phones. You collect many samples, each containing data on kk purchase transactions. For each sample, you compute the mean transaction value. You calculate the mean and standard deviation of these means. The means comes out to be roughly 50 dollars and the standard deviation is roughly 7 dollars. What does this data mean? *

Answer 1

What the data means about the amount of money people spend on purchasing accessories for the their mobile phones is that;

on the average, people spend between 43 and 57 dollars on every accessory they buy.

Confidence Interval

We are told that;

Mean is $50

Standard deviation from the mean is $7

From the empirical rule, since standard deviation from the mean is $7, then we can conclude that the confidence interval is;

CI = 50 ± 7

CI = (50 - 7), (50 + 7)

CI = (43, 57)

In conclusion, this means that on the average, people spend between 43 and 57 dollars on every accessory they buy.

Read more about Confidence interval at; brainly.com/question/17097944

Answer 2

Answer:

According to your estimates, people, on average, spend between 43 and 57 dollars on every accessory they buy.

Explanation:

Because standard deviation is a measure of variability about the mean, this is shown as the mean plus or minus one or two standard deviations. We see that the majority of observations are within one standard deviation of the mean, and nearly all within two standard deviations of the mean.