Answer:
The 80% confidence interval for the mean number of toys purchased each year is between 7.5 and 7.7 toys.
Step-by-step explanation:
We have that to find our [tex]\alpha[/tex] level, that is the subtraction of 1 by the confidence interval divided by 2. So:
[tex]\alpha = \frac{1 - 0.8}{2} = 0.1[/tex]
Now, we have to find z in the Ztable as such z has a pvalue of [tex]1 - \alpha[/tex].
That is z with a pvalue of [tex]1 - 0.1 = 0.9[/tex], so Z = 1.28.
Now, find the margin of error M as such
[tex]M = z\frac{\sigma}{\sqrt{n}}[/tex]
In which [tex]\sigma[/tex] is the standard deviation of the population and n is the size of the sample.
[tex]M = 1.28\frac{1.5}{\sqrt{305}} = 0.1[/tex]
The lower end of the interval is the sample mean subtracted by M. So it is 7.6 - 0.1 = 7.5
The upper end of the interval is the sample mean added to M. So it is 7.6 + 0.1 = 7.7
The 80% confidence interval for the mean number of toys purchased each year is between 7.5 and 7.7 toys.
