Sample of 80 people randomly asked in casino shows that average lost per person is $160 with a standard deviation ó = $40. Based on this data create a 99% confidence interval for population mean. Does loss of $180 for single person contradict expectation? Explain your answer.

Answer 1

Formula:

CI99 = mean + or - 2.575 (sd/√n)

Substitute what is given into the formula:

CI99 = 160 + or - 2.575 (40/√80)

I'll let you take it from here. Once you have the interval calculated, you should be able to answer the question in the problem.

I hope this will help get you started.

Answer 2

What does "or" mean?