A recent study found that consumers are making average monthly debt payments of

Question

A recent study found that consumers are making average monthly debt payments of $983 (Experian.com November 11, 2010). The accompanying table shows a portion of average debt payments for 26 metropolitan areas. Use Table 2 Debt Payments Washington, D.C $1,285 1,135 1,133 1,133 1,104 1,098 1,076 1,045 1,024 1,017 1,011 1,011 Minneapolis 970 948 920 886 867 Miami 812 791 SOURCE: http://www.Experian.com, November 11, 2010. a. Use Excel to calculate the mean and standard deviation for debt payments. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Sample mean Sample standard deviation b. Construct a 90% and a 95% confidence interval for the population mean. (Round-r value to 3 decimal places and final answers to 2 decimal places) 90% to 95% to sc ¢ 5

Explanation / Answer

a) Mean= SUM/n= 25570/26= 983.46

Standard deviation = 124.61 ( By using excel function STDEV)

b) M = 983.4615

t = 1.71
sM = (124.60862/26) = 24.44

= M ± t(sM)
= 983.4615 ± 1.71*24.44
= 983.4615 ± 41.743129

M = 983.4615, 90% CI [941.718371, 1025.204629].

You can be 90% confident that the population mean () falls between 941.72 and 1025.20.

M = 983.4615

t = 2.06
sM = (124.60862/26) = 24.44

= M ± t(sM)
= 983.4615 ± 2.06*24.44
= 983.4615 ± 50.330503

M = 983.4615, 95% CI [933.130997, 1033.792003].

You can be 95% confident that the population mean () falls between 933.13 and 1033.79

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.