Question

A company wishes to estimate the average amount customers pay per month. A random sample of 200 customers' bills produced a sample mean of $50 and a sample standard deviation of $5. (Hint: In the previous question, $5 is the standard deviation of the whole population, while now $5 is a standard deviation of just a sample of 200 customers.) b) Without any calculations, do you expect that a 95% confidence interval for the population mean will be wider than in the previous question, or narrower, or the same? Question 17 options: wider narrower the same

Answer 1

Without any calculations, we can expect that a 95% confidence interval for the population mean will be wider than in the previous question. This is because the sample size is larger and the sample standard deviation is smaller, which results in a greater degree of precision and a narrower confidence interval.

Step-by-step explanation:

The company wishes to estimate the average amount customers pay per month. A random sample of 200 customers' bills produced a sample mean of $50 and a sample standard deviation of $5. Without any calculations, we can expect that a 95% confidence interval for the population mean will be wider than in the previous question. This is because the sample size is larger and the sample standard deviation is smaller, which results in a greater degree of precision and a narrower confidence interval.