The owner of a currency exchange bureau on an airport wishes to estimate the mean value of cash necessary for the exchange of PLN and EUR. Experience tells the owner that the demand for euro is distributed normally, with a standard deviation equal to 4 (thousand PLN). Having observed the demand for 10 days, the owner obtained a mean of 24.4 ( thousand PLN). Calculate the realization of the confidence interval for the expected demand with a confidence level of 0.90.

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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The owner of a currency exchange bureau on an airport wishes to estimate the mean value of cash necessary for the
exchange of PLN and EUR. Experience tells the owner that the demand for euro is distributed normally, with a standard
deviation equal to 4 (thousand PLN). Having observed the demand for 10 days, the owner obtained a mean of 24.4 (
thousand PLN). Calculate the realization of the confidence interval for the expected demand with a confidence level of
0.90.
Transcribed Image Text:The owner of a currency exchange bureau on an airport wishes to estimate the mean value of cash necessary for the exchange of PLN and EUR. Experience tells the owner that the demand for euro is distributed normally, with a standard deviation equal to 4 (thousand PLN). Having observed the demand for 10 days, the owner obtained a mean of 24.4 ( thousand PLN). Calculate the realization of the confidence interval for the expected demand with a confidence level of 0.90.
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