Confidence interval for the mean daily income

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A city in Ontario builds a new public parking garage in its Central business district downtown, hoping to attract more shoppers downtown. The city plans to pay for the structure through parking fees. For a random sample of 44 week- days, daily fees collected averaged $12, 600. The population standard deviation for daily fees collected is known to be $1500. Assume that parking fees are approximately normally distributed

a) Find a 90% confidence interval for the mean daily income this parking garage will generate and interpret your answer. Use z- distribution.

b) The consultant who advised the city on this project predicted that parking revenues would average $12,800 per day. Test the consultants claim at a level of confidence of 5% using a z distribution.

Reference no: EM132495130

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