4. The department of finance of Wells Fargo Bank wants to estimate the amount of

Question

4. The department of finance of Wells Fargo Bank wants to estimate the amount of an annual healthcare premium needed for an investor banker as part of a new recruiting program. In a sample of 75 investor bankers, they found that the average yearly premium needed is $28,500 with a standard deviation of $3,500. (a) What is the population mean? What is the best estimate of the population mean? (b) Develop an 80% confidence interval for the population mean (c) Assuming a 99% level of confidence, how large of a sample is required with an acceptable error of $300?

Explanation / Answer

a) here population mean for premium is unknown

Best estimate of the population mean =28500

b)

c)

sample mean = 28500 sample size                 n= 75 population std deviation = 3500 standard errror of mean = x=/n= 404.1452

Related Questions

Navigate

• Browse (All)
• Browse 4
• Subjects

---

---

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