1. The Minister of Transportation for Cloud City is considering a luxury tax for cloud shuttles that carry passengers between
the Skyreach Hotel and the Bespin Spaceport. He randomly selects 12 shuttles and counts the number of one-way trips
between those two stops during a typical week. Below are the data:
# trips 144 132 137 143 128 120 131 135 126 137 139 129
(a) Estimate with 97% confidence the mean number of trips made between the Skyreach Hotel and the Bespin Spaceport
by all cloud shuttles.
(b) What is the margin of error associated with the estimate? Explain its meaning.
(c) The city council is pressing the minister to levy the tax under the High Volume Transportation Act meaning more
than 130 weekly trips are made on average between the two stops. Does the interval support the council’s claim?
Explain.
(d) If the minister wants to estimate the mean number of trips to within 2.5 at the 97% confidence level, what size
sample should he use? Assume the population standard deviation is 6.1