How much money does a typical family of four spend at a McDonald’s restaurant per visit? The amount is a normally distributed random variable with a mean of $16.40 and a standard deviation of $2.75.
a. Find the probability that a family of four spends less than $10.
b. What is the amount below which only 10% of families of four spend at McDonald’s?
Sugar is packed in 5-pound bags. An inspector suspects the bags may not contain 5 pounds. A sample of 50 bags produces a mean of 4.6 pounds and a standard deviation of 0.7 pound. Is there enough evidence to conclude that the bags do not contain 5 pounds as stated, at α = 0.05? Also, find the 95% confidence interval of the true mean.