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26 January, 21:27

A random sample of 30 lunch orders at noodles and company showed a mean bill of $10.36 with a standard deviation of $5.31. find the 95 percent confidence interval for the mean bill of all lunch orders.

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  1. 26 January, 21:43
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    The formula for calculating the Confidence Interval is as follows:

    Confidence Interval = x + - (z*s) / √N

    Where:

    x = mean = 10.36

    z = taken from standard normal distribution table based on 95% confidence level = 1.96

    s = standard deviation = 5.31

    N = sample size = 30

    Substituting know values on the equation:

    Confidence Interval = 10.36 + - (1.96 * 5.31) / √30

    Confidence Interval = 8.46 and 12.26

    Hence the bill of lunch orders ranges from 8.46 to 12.26.
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