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Answer:
We are confident at 90% that the true mean for the amount spent on medicines is between (4568.96 and 4631.04)
Step-by-step explanation:
Information given
represent the sample mean for the amount spent on medicines
population mean
s=800 represent the sample standard deviation
n=1800 represent the sample size
Solution
The confidence interval for the true population mean is given by:
(1)
We can calculate the degrees of freedom with:
We know that the Confidence level is 0.90 or 90%, the value of significance is and
, and we can use excel, a calculator or a table to find the critical value. The excel command would be: "=-T.INV(0.05,1799)".And we see that
Replcing in the formula for the confidence interval we got:
We are confident at 90% that the true mean for the amount spent on medicines is between (4568.96 and 4631.04)