The US Dairy Industry wants to estimate the mean yearly milk

The U.S. Dairy Industry wants to estimate the mean yearly milk consumption. A sample of
16 people reveals the mean yearly consumption to be 60 gallons with a standard deviation
of 20 gallons. Assume the population distribution is normal.
a. What is the value of the population mean? What is the best estimate of this value?
b. Explain why we need to use the t distribution. What assumption do you need to make?
c. For a 90% confidence interval, what is the value of t?
d. Develop the 90% confidence interval for the population mean.
e. Would it be reasonable to conclude that the population mean is 63 gallons?

Solution

a)
Population Mean = Mean(x)=60
b)
We only have sample standard deviation , we only use t-distribution
in case of it
c)
Confidence Interval
CI = x