Question

A coffee shop wants to estimate the average amount of money customers spend per visit. From a sample of 200 transactions, the mean spending is $12.50 with a standard deviation of $2. Construct a 99% confidence interval for the true average spending per customer.

Name: a coffee shop wants to estimate the average amount of money customers spend per visit from a sample of 200 transactions the mean spending is 1250 with a standard deviation of 2 construct a 99 confiden
Uploaded: 2023-08-17T21:54:36-08:00
Duration: 1 min 7 s
Channel: James Kiss
Description: a coffee shop wants to estimate the average amount of money customers spend per visit from a sample of 200 transactions the mean spending is 1250 with a standard deviation of 2 construct a 99 confiden

          A coffee shop wants to estimate the average amount of money customers spend per visit. From a sample of 200 transactions, the mean spending is $12.50 with a standard deviation of $2. Construct a 99% confidence interval for the true average spending per customer.

Added by John D.

Instant Answer

Solved by Expert James Kiss

08/17/2023

Step 1

First, we need to find the standard error. The standard error is the standard deviation divided by the square root of the sample size. In this case, the standard deviation is $2 and the sample size is 200. So, the standard error is $2 / sqrt(200) = $0.1414. Show more…

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A coffee shop wants to estimate the average amount of money customers spend per visit. From a sample of 200 transactions, the mean spending is $12.50 with a standard deviation of $2. Construct a 99% confidence interval for the true average spending per customer.