A construct a 95 and 99 confidence interval for the mean of


1. A sample of 144 cans of coffee showed that an average weight of 16 ounces. The standard deviation of the population is known to be 1.4 ounces.

a. Construct a 95% and 99% confidence interval for the mean of the population.

b. Discuss why CI intervals are different in part a depending on the confidence level.

2. The monthly incomes from a random sample of workers in a factory are shown below. Be aware that this is the standard deviation of the population unknown case.

Monthly Income (In $)

  • 4000
  • 5000
  • 7000
  • 4000
  • 6000
  • 6000
  • 7000
  • 9000

a. Compute the point estimate of population mean and the point estimate of the population standard deviation (in dollars)

b. Compute the margin of error (in dollars) at 95% confidence

c. Compute a 95% confidence interval for the mean of the population. Assume the population has a normal distribution. Give your answer in dollars.

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Finance Basics: A construct a 95 and 99 confidence interval for the mean of
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