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?

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Definitions:

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An IRS-approved strategy for calculating the taxable portion of annuity payments, primarily used to simplify tax reporting.

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The portion of one's income that is subject to taxation after all deductions, exemptions, and adjustments have been applied.

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An annuity that provides payments for the lifetime of the annuitant only, ceasing upon their death.

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