A. random sample of 50 four year olds attending daycare centers provided a yearly tuition average of 3987$ and the population standard deviation of $630. Find the 90% confidence interval of the true mean. and B. If a daycare center were starting up and wanted to keep tuition low, what would be a reasonable amount to charge?

Question

A. random sample of 50 four year olds attending daycare centers provided a yearly tuition average of 3987$ and the population standard deviation of $630.  Find the 90% confidence interval of the true mean.  and B. If a daycare center were starting up and wanted to keep tuition low, what would be a reasonable amount to charge?

PsyDAG · Answer

90% = 3987 ± 1.645 (630) How low would be reasonable would also depend on their start-up expenses, so I can't answer that.