A Cost Accountant Wishes to Establish the Average Amount $\mu$ ,Spent by Executives Per Day on Travel and Lodging

Short Answer

A cost accountant wishes to establish the average amount, $\mu$ ,spent by executives per day on travel and lodging.Then a comparison,between the average and the amount turned in to be reimbursed,will be made and unreasonably high or low expense amounts audited.A random sample of 50 executive expense receipts is taken.The average in the sample was $208.From a similar survey the standard deviation of the amounts is approximately $\text { σ }$ = $29.The accountant prepares a 90-percent confidence level for $\mu$ .What is the confidence interval?
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