Question

What price do farmers get for the peach crops? in the third week of June, a random sample of 40 farming regions gave a sample mean of $6.88 per basket. assume that the standard deviation is known to be $1.92 per basket. find a 90% confidence interval for the population mean price per basket that farmers in this region get for their peach crop

Answer 1

Given:
Sample size, n = 40
Sample mean, xb = $6.88
Population std. deviation, σ = $1.92 (known)
Confidence interval = 90%

Assume normal distribution for the population.
The confidence interval is
(xb + 1.645*(σ/√n), xb - 1.645*(σ/√n)
= (6.88 + (1.645*1.92)/√40, 6.88 - (1.645*1.92)/√40)
= (7.38, 6.38)

Answer: The 90% confidence interval is (7.38, 6.38)