Question

“An Internet based e-learning company has begun using new online statistics content to replace a textbook. Since the main competition is hardback textbooks, before the company decides what price to charge students for the new product, it wants to know the average price of all hardback statistics textbooks currently on the market. The research department at this e-learning company took a random sample of 20 such textbooks and collected information on their prices. The data could then be used to compute a confidence interval for the true mean price of hardback statistics textbooks. Assume the population of these textbook prices is normally distributed.”

Answers

1. we are 90% confident that the true mean price of hard back statics is between $93.15 and$95.85.
What is statistics and its types?
• In Maths, Statistics is a method of interpreting, analysing and summarising the data.
• Hence, the types of statistics are categorised based on these features: Descriptive and inferential statistics.
• Based on the representation of data such as using pie charts, bar graphs, or tables, we analyse and interpret it.
Since the 90% confidence interuale tells that when you are going to construct a confidence interuale of size 30 100firmes , out of this 100, 90 times the truew means will lie in the confidence interuale.
So option 1) & 2) are incorrect.
Similarly option 4 will no be correct .
So option c is correct.
i.e. we are 90% confident that the true mean price of hard back statics is between $93.15 and$95.85.
Learn more about statistics
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