Company A is trying to sell its website to Company B. As part of the sale,...

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Company A is trying to sell its website to Company B. As part ofthe sale, Company A claims that the average user of their sitestays on the site for 10 minutes. To test this claim Company Bcollects the times (in minutes) below for a sample of 10 users.Assume normality.
Time 1.6
25.9
7
23.3
7.3
8.8
18.5
8.6
10.8
12
Construct a 95% confidence interval for the true mean time spenton the web site.
a) What is the lower limit of the 95% interval? Give your answerto three decimal places. Enter 0 if your lower limit is less than0.
b) What is the upper limit of the 95% interval? Give your answerto three decimal places.
c) Based on this data, do you believe the claim made by CompanyA?
Yes because 10 is not inside the interval.
No because 10 is not inside the interval.
Yes because 10 is inside the interval.
No because 10 is inside the interval.
d) Which of the following assumptions should be checked beforeconstructing the above confidence interval?
the data need to have small variance
the data need to follow a t distribution
the data need to be skewed
the data need to follow a normal distribution

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4.1 Ratings (662 Votes)

TRADITIONAL METHOD given that sample mean x 1238 standard deviation s 77474 sample size n 10 I stanadard error sd sqrtn where sd standard deviation n sample size standard error 77474 sqrt 10 245 II margin of error t 2 stanadard error where ta2 ttable value level of significance See Answer

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