Reference no: EM13131651
This part of the lab asks you to use your work from previous labs, as well as your knowledge of confidnece intervals to decide whether or not the local economy is strong enough to support a new candy-making business. Bob enjoys making candy and some friends have encouraged him to open a candy-making business. To see if the local citizens buy enough candy, Bob gathers a sample of how much money they spend annually on the type of candy Bob will make. You will help Bob analyze this data to see if they spend more than the national average. If so, Bob thinks there will be enough demand to support his new candy-making business.
The dollars spent per person is given in the Candy Business worksheet in our Lab 6 Excel file (linked above or here).
After you analyze the data, answer the following questions.
1. Find the sample mean and sample standard deviation of the amount citizens spend per year.
2. When finding a confidence interval for the true mean spent of ALL citizens, should we use a z-score or a t-score? Why?
3. Find the z/t-values (as appropriate) for a 95% confidence interval and a 92% confidence interval.
4. Find a 95% and a 92% confidence interval for the true mean amount that citizens spend per year.
5. What do you think the lowest possible mean amount spent per year is? Why?
6. Do you think Bob has a good customer base for his new business? Explain.