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Question1: Explain why the critical value for a given confidence level when the population variance is not known is always greater than the critical value for the same confidence level when the population variance is known.
Question2: According to an investigation reporter members of Congress are coming under more scrutiny for “fact-finding” trips. Since 2000, members of Congress have made 6,666 trips paid for by private interests. The trips were worth about $19.6 million.
[A] If the cost of the trips could be considered to have a normal distribution, determine the standard deviation of the cost of the trips. (Hint: Recall the Empirical Rule)
[B] Choose a reasonable confidence level and calculate a confidence interval for the average cost of congressional “fact-facing” trips from the year 2000 until January 19, 2006.
[C] Calculate the average cost of these “fact-finding” trips.
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