Construct a 95 confidence interval for the population mean


In a recent sample of 84 used cars sales costs, the sample mean was $6425 with a standard deviation of $3156. Assume the underlying distribution is approximately normal.

a. Which distribution should you use for this problem? Explain your choice.

b. Define the Random Variable X, in words.

c. Construct a 95% confidence interval for the population mean cost of a used car.

i. State the confidence interval.

ii. Sketch the graph.

iii. Calculate the error bound.

d. Explain what a "95% confidence interval" means for this study.

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Basic Statistics: Construct a 95 confidence interval for the population mean
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