Does the old population average fall in this interval

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The daily water consumption during the summer in the city of Chicago has historically been on average of 1.2 million gallons per day with a standard deviation of .6 million gallons per day.

a.) The city starts a water conservation campaign. A random sample of 30 days is selected and the water consumption is recorded.  The water consumption is 1.0 million gallons per day.  Draw a 99 percent confidence interval around this average.  Does the old population average fall in this interval?

b.)  Test the hypothesis that the water conservation program reduces water consumption with a 1 percent chance of type 1 error.  Compare these results to the confidence interval.

Reference no: EM13508415

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