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1 month ago

Question Six

Business

1 answer:

harina [3.8K]1 month ago

5 0

Answer:

The estimated 90% confidence interval for the average depth of all frames in the consignment ranges from a lower boundary of 105.419 mm to an upper boundary of 106.581 mm.

Explanation:

The confidence interval for the mean is calculated as mean +/- margin of error (E)

mean = 106 mm

sample sd = 3.5mm

n is the sample size = 100

degree of freedom = n-1 = 100-1 = 99

confidence level (C) = 90% = 0.9

significance level = 1 - C = 1 - 0.9 = 0.1 = 10%

the critical value (t) for 99 degrees of freedom at a 10% significance level is 1.6602

E = t × sample sd/√n = 1.6602×3.5/√100 = 0.581 mm

Lower limit of mean = mean - E = 106 - 0.581 = 105.419 mm

Upper limit of mean = mean + E = 106 + 0.581 = 106.581 mm

The 90% confidence interval is (105.419 mm, 106.581 mm)

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1) change in income if order is accepted:

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the company will incur a loss of $10,955 if the order is approved.

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