Point estimates and confidence intervals

Reference no: EM13104388

Question: The Warren County Telephone Company claims in its annual report that "the typical customer spends $70 per month on local and long-distance service." A sample of 12 subscribers revealed the following amounts spent last month.

Amounts Spent Last Month:

$64

$57

$59

$68

$60

$65

$69

$56

$58

$56

$55

$56

a) What is the point estimate of the population mean? (Round your answer to 3 decimal places)

b) Determine the 99% confidence interval for the population mean. (Round your answer to 2 decimal places)

Note: Confidence interval is between $ and $.

c) Is the company's claim that the "typical customer" spends $70 per month reasonable?

Reference no: EM13104388

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