Many dairy cows now receive injections of BST, a hormone intended to spur greater milk production. After the first injection, a test herd of 60 Ayrshire cows increased their mean daily production from 47 pounds to 61 pounds of milk. The standard deviation of the increases was 5.2 pounds. We want to estimate the mean increase a farmer could expect in his own cows.
a) Check the assumptions and conditions for inference.
b) Write a 95% confidence interval.
c) Explain what your interval means in this context.
d) Given the cost of BST, a farmer believes he cannot afford to use it unless he is sure of attaining at least a 25% increase in milk production. Based on your confidence interval, what advice would you give him?