Quiz: Chapter 8 Quiz Submit Qui This Question: 1 pt 3 of 10 (2 complete) This Qu
ID: 3335037 • Letter: Q
Question
Quiz: Chapter 8 Quiz Submit Qui This Question: 1 pt 3 of 10 (2 complete) This Quiz: 10 pts possit Banking fees have received much attention during the recent economic recession as banks look for ways to recover from the crisis. A sample of 32 customers paid an average fee of $12.51 per month on their interest-bearing checking accounts. Assume the population standard deviation is $1.67. Complete parts a and b below. a. Construct a 99% confidence interval to estimate the average fee for the population. The 99% confidence interval has a lower limit of $2 and an upper limit of $ (Round to the nearest cent as needed.) b. What is the margin of error for this interval? ? (Round to the nearest cent as needed.)Explanation / Answer
Mean is 12.51 and s is 1.67 also N is 32. thus standard error, SE is s/sqrt(N)=1.67/sqrt(32)=0.295
For 99% confidence, z value is 2.575
thus lower limit is mean-SE*z= 12.51-0.295*2.575=11.75
upper limit is mean+SE*z= 12.51+0.295*2.575 =13.269
margin of error is SE*z which is 0.295*2.575=0.7596
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.