Provide an Appropriate Response $98 \%$ Confidence Interval for the Population Mean

question 106

Multiple Choice

Provide an appropriate response.
-Construct a $98 \%$ confidence interval for the population mean, $\mu$ . Assume the population has a normal distribution. A study of 14 car owners showed that their average repair bill was $\$ 192$ with a standard deviation of $\$ 8 .$

• A) \(( \$ 186.30 , \$ 197.70 )\)
• B) \(( \$ 222.30 , \$ 256.10 )\)
• C) \(( \$ 328.30 , \$ 386.90 )\)
• D) \(( \$ 115.40 , \$ 158.80 )\)

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Definitions:

Present Value

Today’s value of some amount of money that is to be received sometime in the future.

$50 Barrel

A pricing level for a barrel of crude oil, often used as a reference for energy market analysis and economic forecasting.

Extracting Oil

The process of removing crude oil from the earth through drilling or other methods to use as an energy source or in various industrial applications.

Shale

A fine-grained sedimentary rock that can contain significant amounts of oil and natural gas within its layers.