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The Average Natural Gas Bill for a Random Sample of 26

question 8

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The average natural gas bill for a random sample of 26 homes in the 19808 zip code during the month of March was $305.30 with a sample standard deviation of $46.50. The margin of error for a 98% confidence interval around this sample mean is -----.

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Definitions:

Variance

A measure of dispersion indicating how far individual values in a dataset are from the mean.

Standard Deviation

A measure of the amount of variation or dispersion of a set of values; a low standard deviation indicates that the values tend to be close to the mean.

Sampling Distribution

The probability distribution of a given statistic based on a random sample.

Chi-square Distribution

A probability distribution commonly used in statistical significance tests.

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