Problem

1. Data were collected on the amount spent by a randoms sample of 90 customers ior lunch at a major Houston restaurant. It was found that the sample mean was $\$ 7.45$. (a) State the population and sample. (b) Identify the variable. Is the variable qualitative or quantitative? Discrete or continuous? (c) Is the variable discrete or continuous? (d) Does " $\$ 7.25$ " represent a statistic or a parameter? Why?

Solution

Step 1 :The population is all customers who have lunch at this major Houston restaurant.

Step 2 :The sample is the 90 customers from whom data was collected.

Step 3 :The variable is the amount spent by a customer for lunch. This variable is quantitative because it can be measured numerically. It is also continuous because the amount spent can take on any value within a certain range, not just whole numbers.

Step 4 :The variable is continuous.

Step 5 :The value '$7.45' represents a statistic because it is a measure that describes a characteristic of the sample, not the entire population.

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