An important problem in industry is shipment damage. A electronics distribution company ships its product by truck and determines that it can meet its profit expectations if, on average, the number of damaged items per truckload is fewer than 12. A random sample of 12 departing truckloads is selected at the delivery point and the average number of damaged items per truckload is calculated to be 11.3 with a calculated sample of variance of 0.49. Select a 95% confidence interval for the true mean of damaged items. a) (10.86, 11.74) b) (11.56, 12.44) c) (-0.4446, 0.4446) d) (10.69, 11.91) e) [48.92, -29.36]

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Answer:

The confidence interval for the true mean is

[tex]10.86<\mu<11.74[/tex]

Step-by-step explanation:

We have a sample with mean of 11.3 and variance 0.49. The size of the sample is 12.

We can estimate the CI as

[tex]\bar x - t\sqrt{s^2/n} <\mu<\bar x + t\sqrt{s^2/n}[/tex]

We can calculate the parameter t for a 12-1=11 degrees of freedom and 95% confidence. We look up the value in the t-table, and find that for this conditions t=2.2010.

Then we can calculate

[tex]t\sqrt{s^2/n}=2.2010*\sqrt{0.49/12}=2.2010* 0.2021=0.4448[/tex]

The confidence interval becomes

[tex]\bar x - t\sqrt{s^2/n} <\mu<\bar x + t\sqrt{s^2/n}\\\\11.3-0.44<\mu<11.3+0.44\\\\10.86<\mu<11.74[/tex]

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