The article "Most Canadians Plan to Buy Treats, Many Will Buy Pumpkins,
Decorations and/or Costumes" (Ipsos-Reid, October 24,2005\()\) summarized a
survey of 1,000 randomly selected Canadian residents. Each individual in the
sample was asked how much he or she anticipated spending on Halloween. The
resulting sample mean and standard deviation were \(\$ 46.65\) and \(\$ 83.70\),
respectively.
a. Explain how it could be possible for the standard deviation of the
anticipated Halloween expense to be larger than the mean anticipated expense.
b. Is it reasonable to think that the distribution of anticipated Halloween
expense is approximately normal? Explain why or why not.
c. Is it appropriate to use the one-sample \(t\) confidence interval to estimate
the mean anticipated Halloween expense for Canadian residents? Explain why or
why not.
d. If appropriate, construct and interpret a \(99 \%\) confidence interval for
the mean anticipated Halloween expense for Canadian residents.