A meat-processing company in Alberta produces and markets apackage of eight small sausage sandwiches. The product isnationally distributed, and the company is interested in knowingthe average retail price charged across the country. A randomsample of 25 retailers was selected giving a sample average retailprice of $2.13. The population standard deviation is known to be$0.20.
A. What do you need to assume in order to compute a confidenceinterval for the interval for the population mean retail pricecharged across the country.
B. Compute a 99% confidence interval for the population meanretail price. Interpret your answer in terms of the question.
C. Suppose you wish to estimate the population mean retail priceto within $0.05 with 99% confidence interval. Retailers should besampled in order to achieve the desired margin of error?
