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A delivery truck manager takes a sample of 25 delivery trucks and calculates the sample mean and sample standard deviation for the cost of operation. A 95% confidence interval for the population mean cost is constructed and found to be $253 to $320. He reasons that this interval contains the mean operating cost for the entire fleet of delivery trucks since the sample mean is contained in this interval.
Do you agree with his reasoning?
How would you interpret this confidence interval?
Is this an appropriate use of a confidence interval?
Concerning your answers to parts a through c, what assumptions did you make (if any)? Does the Central Limit Theorem apply? Why or why not?
How does this apply or could apply to your profession?
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