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The proprietor of a boutique in Wollongong wanted to determine the average age of his customers. A random sample of 25 customers revealed an average age of 32 years with a standard deviation of 8 years. Determine a 95% confidence interval estimate for the average age of all his customers.

Question

The proprietor of a boutique in Wollongong wanted to determine the average age of his customers. A random sample of 25 customers revealed an average age of 32 years with a standard deviation of 8 years. Determine a 95% confidence interval estimate for the average age of all his customers.

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Solution

To calculate a 95% confidence interval for the average age of all customers, we will use the formula for a confidence interval:

CI = X ± Z * (s/√n)

where:

  • X is the sample mean
  • Z is the Z-score (which corresponds to the desired confidence level)
  • s is the standard deviation
  • n is the sample size

Given in the problem, we have:

  • X = 32 years
  • s = 8 years
  • n = 25 customers

The Z-score for a 95% confidence interval is approximately 1.96 (you can find this value in a standard Z-score table).

Substituting these values into the formula, we get:

CI = 32 ± 1.96 * (8/√25)

Solving the equation:

CI = 32 ± 1.96 * (8/5)

CI = 32 ± 3.136

So, the 95% confidence interval for the average age of all customers is from 28.864 to 35.136 years. This means we can be 95% confident that the true average age of all customers is between these two values.

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