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Scorpion4ik
26 days ago
5

The recommended retail price of a brand of designer jeans is $150. A retail analyst sampled 16 retail stores and found the avera

ge price was $141 with a standard deviation of $4. If this is a ‘random’ sample and the prices can be assumed to be normally distributed, construct a 95% confidence interval for the average sale price.
Business
1 answer:
harina [3.2K]26 days ago
7 0

Answer:

The confidence interval ranges from 139.04 to 142.96.

Explanation:

The formula for determining a confidence interval is as follows:

Mean (average price) +/- z-score x standard deviation / sqrt(n)

Formula Interpretation:

Mean = $141

z-score for a 95% confidence level = 1.96

standard deviation = $4

n = 16 --> sqrt (n) = 4

<pby plugging="" these="" values="" in="" we="" calculate="" the="" confidence="" interval:="">

141 +/- 1.96 x (4/4)

This results in a confidence interval of 139.04 to 142.96.

</pby>
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<pthus for="" our="" stock="" price="" calculation="" we="" have:="">

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