Discussion:
Q1) Megacorp wants to determine whether the mean of all one-day travel expenses in Moscow exceeds $500. A simple random sample of 35 one-day travel expenses is obtained from Megacorp travel expense files. The average one-day Moscow expense was found to be $538 with a standard deviation of $41.
a) Calculate the probability of observing a sample mean of at least $538 if the actual population mean is $500.
b) Based on you answer to a, do you think the mean of all one-day travel expenses for Megacorp employees in Moscow exceeds $500? Explain.
Q2) Suppose that, for the sample size of n=100 measurements, we find a sample mean of 50 and a standard deviation of 2. Calculate confidence intervals for the population mean with an 82% confidence level.