n a random sample of 100 customers in Washington, the company found that the average sale was $7.87 with a standard deviation of $1.95. There was a clear right skew to the sample data. Create and interpret a 95% confidence interval for the true average amount spent by customers at Sunquid in the state of Washington. Make sure to address the conditions for inference. “So you’re telling me that all of our customers are spending between those two amounts each time they come in? That’s fantastic!” one of the executives exclaims. There are two major flaws to the executive’s statement. Identify the two flaws and elaborate to the executive why those two things are not true.

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter10: Statistics
Section10.4: Distributions Of Data
Problem 19PFA
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In a random sample of 100 customers in Washington, the company found that the average sale
was $7.87 with a standard deviation of $1.95. There was a clear right skew to the sample data.

  1. Create and interpret a 95% confidence interval for the true average amount spent by
    customers at Sunquid in the state of Washington. Make sure to address the conditions
    for inference.
  2. “So you’re telling me that all of our customers are spending between those two amounts
    each time they come in? That’s fantastic!” one of the executives exclaims. There are two
    major flaws to the executive’s statement. Identify the two flaws and elaborate to the
    executive why those two things are not true.
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