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A T-shirt company is interested in knowing the average retail price charged for one product sold in stores across the country. The company cannot justify a national census to generate this information. Based on the company information system's list of all retailers who carry the product, a researcher for the company contacts 36 of these retailers and ascertains the retail prices for the product. A population standard deviation is known to be $1.13. The price data (in dollar) is listed in the following table.
22.3
21.6
21.2
20.1
19.9
21.1
23.1
20.7
18.7
21.0
19.8
21.7
21.8
20.9
20.8
22.0
23.0
22.2
20.5
21.4
22.9
23.2
21.5
18.2
21.9
20.2
22.6
22.4
(a) Use Excel to calculate the sample average retail price.
b) Set up a 90% confidence interval of the population average retail price charged for this T-shirt item.
c) Does the population of retail price have to be normally distributed here? Explain briefly.
d) What is the probability that the mean retail price, in a sample of size 36, is greater than $21? Assume the population average retail price is $21.4.
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