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

question 77

Short Answer

Instruction 8-8
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 8-8,during January,a sample of 16 days has a sample mean of 48 rooms.This information is used to calculate an interval estimate for the population mean to be from 40 to 56 rooms.What is the level of confidence of this interval?

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Definitions:

Interest Rate

is the percentage of a loan amount charged by the lender to the borrower for the use of assets.

Net Present Value

A calculation that compares the present value of a project's cash inflows to its cash outflows, used to assess the viability or profitability of an investment.

Interest Rate

The percentage of a loan that incurs interest costs for the borrower, often stated as an annual rate of the outstanding loan amount.

Net Present Value

A calculation that compares the value of all future cash flows of a project, discounted back to the present, to the initial investment.