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The recommended retail price of a brand of designer jeans is $150. A retail analyst sampled 16 retail stores and found the average price was $141 with a standard deviation of $4. If this is a 'random' sample and the prices can be assumed to be normally distributed, construct a 95% confidence interval for the average sale price.

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  1. Today, 16:13
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    Confidence Interval is 139.04 - 142.96

    Explanation:

    The formula for a confidence interval is as follow:

    Mean (Average price) + / - z-score x standard deviation / sqrt (n)

    Formula Interpretation:

    Mean = $141

    z-score for 95% confidence interval = 1.96

    standard deviation = $4

    n = 16 - -> sqrt (n) = 4

    By using these inputs, we can calculate the confidence interval as follow:

    141 + / - 1.96 x (4/4)

    Confidence Interval is 139.04 - 142.96
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