Question: Mayor Davids of Stanford Florida is concerned about the increasing costs of car maintenance for the police, fire and other cars leased by the city. Last year he knows that the cost for maintaining each car by the city motor pool was $364. He really wants to fire all the city mechanics (the hand of John Doe, the city manager, is seen again).

Mayor Davids wants to hire his brother-in-law, Steve Smith, to do the work. To justify this to the City Commission, Steve agrees to provide a random sample of the costs he charges the County to fix and maintain their cars. In a sample of 36 cars Steve showed a mean repair cost of $330 with a standard deviation (which Steve has no idea what this is) of $120.

Based on this information, what is the confidence interval of the mean for this information at the 0.05 level, and would you advise Mayor Davids to hire his crummy bother-in-law, I mean Steve Smith, to do the work – why or why not – be explicit, no Yes or No answers?

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