Answer to Question #60548 in Statistics and Probability for Lindsay

Question

Based on studies conducted in various regions across the country, the average cost of pumpkins for consumers is $3.18 per kg.
From a random sample of 15 farmer’s markets in the Montreal-area you determine that the average price for pumpkins is $4.25 per kg with a standard deviation of $1.90 per kg.
a) Determine the minimum sample size necessary to construct a 95% confidence interval with maximal error of E = 0.5 for the mean price of pumpkins
b) Construct a 95% confidence interval for the average price of pumpkins in the Montreal-area and determine if it differs significantly from that of the rest of the country.