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The U.S. dairy industry wants to estimate the mean yearly milk consumption. A sample of 22 people reveals the mean yearly consumption to be 76 gallons with a standard deviation of 18 gallons. Assume the population distribution is normal.

a. Calculate a 95% confidence interval for the mean yearly milk consumption.
b. Test the hypothesis that the mean yearly milk consumption is 80 gallons at a 5% significance level.

1 Answer

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Final answer:

To calculate the 95% confidence interval for yearly milk consumption, one must use the sample mean, standard deviation, sample size, and the t-distribution. For hypothesis testing, the null hypothesis that the mean is 80 gallons is tested against the alternative hypothesis using the t-test statistic and critical t-value for a 5% significance level.

Step-by-step explanation:

To calculate a 95% confidence interval for the mean yearly milk consumption, we will use the sample mean (\( \bar{x} \)), the standard deviation (s), and the sample size (n). Since the sample size is less than 30 and the population standard deviation is not known, we'll use the t-distribution.

Confidence Interval Calculation:

  • Find the t-score that corresponds to a 95% confidence level for a sample size of 22 (degrees of freedom = n - 1 = 21). This value can be found in the t-distribution table or with a calculator (approximately 2.080).
  • Calculate the standard error (SE) using the formula SE = s / \(\sqrt{n}\).
  • Multiply the t-score by the SE to find the margin of error (MOE).
  • Add and subtract the MOE from the sample mean to find the confidence interval.

Hypothesis Testing:

  1. State the null hypothesis H0: \( \mu = 80 \) gallons, and the alternative hypothesis Ha: \( \mu \\eq 80 \) gallons.
  2. Calculate the test statistic using the formula\( t = (\bar{x} - \mu) / (s / \(\sqrt{n}\)) \).
  3. Compare the test statistic to the critical t-value for a 5% significance level and 21 degrees of freedom (approximately \(\pm 2.080\)).
  4. If the test statistic is greater than the critical t-value in absolute terms, reject the null hypothesis; otherwise, do not reject the null hypothesis.

By following these steps, we can effectively estimate and test the hypothesis concerning the mean yearly milk consumption.

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User Cowlinator
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