7. Sampling Distributions & Confidence Intervals: Mean

Gas prices are getting more and more expensive. The average gas price, from a random sample of 100 gas stations, was \$3.50. It is assumed that gas prices have a standard deviation of \$0.04. Construct an 80% confidence interval for the true mean gas price in the United States.

Books get more and more expensive every semester, but the distribution of their prices is always normal. 25 randomly selected students in your school spent, on average \$500 with a standard deviation of \$50. Construct a 98% confidence interval for the true spending on books.

You want to purchase one of the new Altima. You randomly select 400 dealerships across the United States and find a mean of \$25,000. Assume a population standard deviation of \$2500. Construct and interpret a 94% confidence interval for the true mean price for the new Nissan Altima.

Find the critical value $t_{\frac{\alpha }{2}}$for an 80% confidence interval given a sample size of 51.