In Order to Estimate the Average Electric Usage Per Month

question 134

Short Answer

In order to estimate the average electric usage per month, a sample of 196 houses was selected, and their electric usage determined.
a.Assume a population standard deviation of 350-kilowatt hours. Determine the standard error of the mean.
b.With a 0.95 probability, determine the margin of error.
c.If the sample mean is 2,000 KWH, what is the 95% confidence interval estimate of the population mean?

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Definitions:

Economists

Scholars or professionals who study, develop, and apply theories and concepts from economics, and write about economic policy.

Capacity Utilization Rate

A measure of how well a company or economy is using its productive capacity, expressed as a percentage of total potential output that is actually being realized.

Recessions

Periods of temporary economic decline during which trade and industrial activity are reduced.

Gross Investment

The total amount spent on new capital assets, before accounting for depreciation, indicating the level of investment in an economy's productive capacity.