Question: Parking. Hoping to lure more shoppers downtown, a city builds a new public parking garage in the central business district. The city plans to pay for the structure through parking fees. During a two-month period (44 weekdays), daily fees collected averaged $126, with a standard deviation of $15.
a) What assumptions must you make in order to use these statistics for inference?
b) Write a 90% confidence interval for the mean daily income this parking garage will generate.
c) Explain in context what this confidence interval means.
d) Explain what 90% confidence means in this context.
e) The consultant who advised the city on this project predicted that parking revenues would average $130 per day. Based on your confidence interval, do you think the consultant was correct? Why?