In Constructing a Confidence Interval For $\sigma \text { or } \sigma ^ { 2 }$

question 2

Multiple Choice

In constructing a confidence interval for $\sigma \text { or } \sigma ^ { 2 }$ a table is used to find the critical values
$\chi _ { \mathrm { L } } ^ { 2 } \text { and } \chi _ { \mathrm { R } } ^ { 2 }$ for values of $n \leq 101$ For larger values of n , $\chi _ { \mathrm { L } } ^ { 2 } \text { and } \chi _ { \mathrm { R } } ^ { 2 }$
approximated by using the following formula: $\chi ^ { 2 } = \frac { 1 } { 2 } \pm z _ { \alpha / 2 } + \sqrt { 2 k - 1 } ^ { 2 }$
number of degrees of freedom and $z _ { \alpha / 2 }$ is the critical z -score. Construct the 90% confidence
interval for $\sigma$ using the following sample data: a sample of size n=232 yields a mean
weight of 154 lb and a standard deviation of 25.5 lb . Round the confidence interval limits to
the nearest hundredth.

• A) \(23.66 \mathrm { lb } < \sigma < 27.58 \mathrm { lb }\)
• B) \(23.39 \mathrm { lb } < \sigma < 28.09 \mathrm { lb }\)
• C) \(24.09 \mathrm { lb } < \sigma < 27.15 \mathrm { lb }\)
• D) \(23.71 \mathrm { lb } < \sigma < 27.65 \mathrm { lb }\)

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Definitions:

Pre-Qualified

The state of having been evaluated and deemed eligible for something, such as a loan or service, based on preliminary criteria.

Mass Affluent

Individuals with a significant amount of disposable income, though not wealthy by traditional standards, making them a target for certain luxury goods and financial services.

80/20 Rule

A theory that suggests that 20 percent of heavy users account for 80 percent of the total demand.

Heavy Users

Consumers who use or purchase a product or service much more frequently than average users.