Instruction 8-7 a Hotel Chain Wants to Estimate the Average Number of Number

question 79

Short Answer

Instruction 8-7
A hotel chain wants to estimate the average number of rooms rented daily in each month. The population of rooms rented daily is assumed to be normally distributed for each month with a standard deviation of 24 rooms.
-Referring to Instruction 8-7,during February,a sample of 25 days has a sample mean of 37 rooms.Use this information to calculate a 92% confidence interval for the population mean.

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Definitions:

Externality

A cost or benefit from production or consumption that accrues to someone other than the immediate buyers and sellers of the product being produced or consumed (see negative externality and positive externality).

Third Party

An individual or group besides the two primarily involved in a transaction or legal matter, sometimes involved as an intermediary or independent party.

Transaction

An exchange or transfer of goods, services, or funds between two or more parties.

Deadweight Losses

Efficiency losses in an economy occurring when total societal welfare is not maximized, typically as a result of market distortions like taxes or subsidies.