A Sample of 144 Cans of Coffee Showed an Average

question 96

Essay

A sample of 144 cans of coffee showed an average weight of 32 ounces.The standard deviation of the population is known to be 1.4 ounces.
a.
Construct a 68.26% confidence interval for the mean of the population.
b.
Construct a 97% confidence interval for the mean of the population.
c.
Discuss why the answers in Parts a and b are different.

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Definitions:

APC

Average Propensity to Consume; the ratio of total consumption to total disposable income.

45-Degree Line

A graphical representation in economics, typically used in Keynesian cross diagrams, showing points where aggregate expenditure equals total output or income.

C Line

A reference in economic models, often representing the consumption function, which shows the relationship between consumption and disposable income.

Disposable Income

The financial scope households possess for spending and saving activities, following income taxes.