A random sample of 55 standard hotel rooms in the Philadelphia area has a mean nightly cost of $154.17. From previous studies, it has been found that the standard deviation of the price of all hotel rooms in Philadelphia is $38.60. Construct a 99% confidence interval for the population mean cost . Round to the nearest penny. Show work below . (5 points )

Answers

Answer 1

The 99% confidence interval for the population mean cost is 38.37 to 269.97.

What is confidence interval?

In statistics, a confidence interval describes the likelihood that a population parameter would fall between a set of values for a given percentage of the time. Confidence ranges that include 95% or 99% of anticipated observations are frequently used by analysts.

Given that the standard hotel rooms in the Philadelphia area has a mean nightly cost of $154.17.

The standard deviation of the price of all hotel rooms in Philadelphia is $38.60.

According to the empirical rule,

P(μ - 3σ ≤ X ≤ μ - 3σ) = 99%.

Here μ = 154.17 and σ = 38.60.

Calculating the confidence interval:

154.17 -  (3 × 38.60) ≤ X ≤ 154.17 + (3 × 38.60)

38.37 ≤ X ≤ 269.97

To learn more about empirical rule, click on below link:

https://brainly.com/question/15674025

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Step-by-step explanation:

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Step-by-step explanation:

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