A Random Sample of 49 Lunch Customers Was Taken at a Restaurant

question 91

Essay

A random sample of 49 lunch customers was taken at a restaurant. The average amount of time the customers in the sample stayed in the restaurant was 33 minutes. From past experience, it is known that the population standard deviation equals 10 minutes.
a.Compute the standard error of the mean.
b.What can be said about the sampling distribution for the average amount of time customers spent in the restaurant? Be sure to explain your answer.
c.With a .95 probability, what statement can be made about the size of the margin of error?
d.Construct a 95% confidence interval for the true average amount of time customers spent in the restaurant.
e.With a .95 probability, how large of a sample would have to be taken to provide a margin of error of 2.5 minutes or less?

---

Definitions:

Aggregate Demand

The total demand for all goods and services in an economy at different price levels, typically within a specified time frame.

Great Depression

A severe worldwide economic downturn that took place during the 1930s, marked by high unemployment, sharp deflation, and a significant fall in economic output.

GDP

Gross Domestic Product (GDP) is the total monetary or market value of all the finished goods and services produced within a country's borders in a specific time period.

Government Purchases

Expenditures by the government on goods and services that directly consume economic resources, distinct from transfer payments.