You are interested in purchasing a new car. One of the many points you wish to consider is the resale value of the car after 5 years. Since you are particularly interested in a certain foreign sedan, you decide to estimate the resale value of this car with a 90% confidence interval. You manage to obtain data on 17 recently resold 5-year-old foreign sedans of the same model. These 17 cars were resold at an average price of $12,630 with a standard deviation of $800. Suppose that the interval is calculated to be ($12,291.23, $12,968.77) . How could we alter the sample size and the confidence coefficient in order to guarantee a decrease in the width of the interval?
A) Decrease the sample size but increase the confidence coefficient.
B) Increase the sample size and increase the confidence coefficient.
C) Keep the sample size the same but increase the confidence coefficient.
D) Increase the sample size but decrease the confidence coefficient.
Correct Answer:
Verified
Q108: The director of a hospital wishes
Q109: A confidence interval was used to estimate
Q110: A marketing research company is estimating the
Q111: The mean replacement time for a random
Q112: Sales of a new line of athletic
Q114: A marketing research company is estimating the
Q115: A 90% confidence interval for the average
Q116: An educator wanted to look at the
Q117: Find the value of t0 such
Q118: Find the value of t0 such
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents