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Unformatted text preview: & 7.12 a . A 95% confidence interval for is x n 96 . 1 196 600 , 32 100 1000 96 . 1 600 , 32 & & or $32,404 < < $32,796. b . A point estimate for the mean starting salary for Marketing/Sales is x =$24,100 and the margin of error is x 8 . 156 100 800 96 . 1 96 . 1 = n c. A 98% confidence interval for is x n 33 . 2 4 . 186 909 , 24 100 800 33 . 2 909 , 22 & & or $22,722.60 < < $23,095.40 7.20. a. Indexing 05 . t with 9 1 = n degrees of freedom in Table 4, we have 05 . t = 1.833. Hence the 90% confidence interval is x n s t 05 . 133 . 5 . 8 10 23 . 833 . 1 5 . 8 & & or 8.367 < < 8.633. b . The 90% confidence interval does not contain the mean 8.7% rate that prevails in the banks market area. Hence, we can conclude with a fair amount of certainty that the population from which we are sampling is not 8.7%. Perhaps the loan applicants at this particular bank do not represent a random sample of all applications in the market area....
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This note was uploaded on 10/02/2009 for the course PSTAT 5E taught by Professor Eduardomontoya during the Spring '08 term at UCSB.
 Spring '08
 EduardoMontoya

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