Question

Suppose taxi fares from Logan Airport to downtown Boston is known to be normally distributed and a sample of seven taxi fares produces a mean fare of $16.51 and a 95% confidence interval of [$15.96, $17.04]. Which of the following statements is a valid interpretation of the confidence interval??

a. 95% of all taxi fares are between $14.77 and $16.23.
b. We are 95% confident that a randomly selected taxi fare will be between $14.77 and $16.23.
c. The mean amount of a taxi fare is $15.51, 95% of the time.
d. With 95% confidence, we can report that the average taxi fare between Logan Airport and downtown Boston will fall between $14.77 and $16.23.

Answer 1

The answer is "Option d".

Explanation:

Please find the correct and complete question in the attachment file.

The taxis were known to also be uniformly distributed through the Logan airport to the city of Boston, as well as a sample of seven taxi rates gives an average of $15.51 for [$14.77 and $16.23] for a 95% trust interval. Having 95 percent confidence, we could give a valid interpretation of the confidence level for the averages taxi rates among both Logan Airport and Boston Centre.