Assume that all variable are approximately normally distributed.

Digital Camera PricesThe prices (in dollars) for a particular model of digital camera with 6.0 megapixels and an optical 3X zoom lens are shown below for 10 online retailers. Estimate the true mean price for this particular model with 95% confidence.

225 |
240 |
215 |
206 |
211 |
210 |
193 |
250 |
225 |
202 |

Solution 6E

Step1 of 3:

From the given problem we have a data set and it is given below:

225 | 240 | 215 | 206 | 211 | 210 | 193 | 250 | 225 | 202 |

We need to estimate the true mean price for this particular model with 95% confidence.

Step2 of 3:

1). The mean price of the particular model is obtained from excel by using the function:

“=Average(Select all data)”

2). The standard deviation of the particular model is obtained from excel by using the function:

“=Std(Select all data)”

3). We have,

Now,

Therefore,

The degrees of freedom is calculated by using the formula: