Question: A car rental company is interested to estimate the average miles its cars are driven

in a particular holiday. A sample of 200 cars is selected from its fleet of 25000

cars. The mean and standard deviation of the sample are 54.50 and 14 miles,

respectively.

a. Develop a 95% confidence interval for the average miles driven.

b. In another region 200 cars were rented and $2500 of fees was collected. Given that 25 cents are charged per miles driven, is there any reason to investigate the billing practices in the other region? Support your answer using the confidence interval in part “a”. Support your answer using statistical reasoning and logic.