Use the Following Information to Answer the Question -Choose the Statement That Explains Which Confidence Interval More Precisely
Use the following information to answer the question. Suppose the manager of a large furniture store wants to estimate the
amount spent by customers during the holiday season. She took a random sample of customers and recorded the amount
they spent. A histogram of the data shows that the data is strongly left-skewed. The figures below show the confidence
intervals for the mean amount spent using (A) raw (untransformed) data, and (B) log-transformed data, which showed a
more normally distributed data set. Use this information to answer the question.
-Choose the statement that explains which confidence interval more precisely depicts the data and why.
A) The confidence interval for the untransformed data is more precise because the values are in actual dollars which is more meaningful.
B) The confidence interval for the geometric mean is more precise because the distribution of the
Log-transformed data is more symmetric.
C) The confidence interval for the untransformed data is more precise because it is strongly
Left-skewed and the confidence interval gives a wider interval.
D) None of these.
Correct Answer:
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