Select the correct answer.A researcher for a travel company is looking into the prices people are willing to pay for airplane tickets. The company has communicated that the overall population mean is $265 with a standard deviation of $40.93. The researcher has a sample of 130 ticket purchases from one location. By the central limit theorem, which interval can the researcher be 95% certain that the sample mean will fall within? A. $261.41 and $268.59 B. $264.37 and $265.63 C. $257.82 and $272.18 D. $254.23 and $275.77
Question
Select the correct answer.A researcher for a travel company is looking into the prices people are willing to pay for airplane tickets. The company has communicated that the overall population mean is 40.93. The researcher has a sample of 130 ticket purchases from one location. By the central limit theorem, which interval can the researcher be 95% certain that the sample mean will fall within? A. 268.59 B. 265.63 C. 272.18 D. 275.77
Solution
To answer this question, we need to use the Central Limit Theorem and the concept of a confidence interval.
The Central Limit Theorem states that if you have a population with mean μ and standard deviation σ and take sufficiently large random samples from the population with replacement, then the distribution of the sample means will be approximately normally distributed.
This will allow us to create a confidence interval for the sample mean. The formula for a confidence interval is:
CI = x̄ ± Z * (σ/√n)
where:
- x̄ is the sample mean
- Z is the Z-score (for a 95% confidence interval, the Z-score is 1.96)
- σ is the population standard deviation
- n is the sample size
Given in the problem, we have:
- μ = $265 (population mean)
- σ = $40.93 (standard deviation)
- n = 130 (sample size)
We are trying to find the interval (x̄ - E, x̄ + E) where E = Z * (σ/√n)
First, calculate E: E = 1.96 * (40.93/√130) ≈ 7.07
Then, calculate the interval:
- Lower limit = μ - E = 265 - 7.07 = $257.93
- Upper limit = μ + E = 265 + 7.07 = $272.07
So, the researcher can be 95% certain that the sample mean will fall within the interval 272.07.
Looking at the options, the closest one is C. 272.18. So, the correct answer is C.
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