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Problem: Mechanic is reviewing his success in the past year. Assume that his costs are normally distributed. Using a random sample of 16 appointments his mean was 125 dollars. The population std deviation is 25 dollars.
Required:
a. 90% confidence interval to estimate the mean cost. Interpret the confidence interval
b. What sample size is needed if the sample estimate is to be within 10 dollars of the true mean with 99% confidence?
c. If the std deviation is tripled without any other changes, what is the effect on the confidence interval?
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