View the step-by-step solution to:

A simple random sample of 80 customers is selected from an account receivable portfolio and the sample mean account balance is $1250. The population...

  1. A simple random sample of 80 customers is selected from an account receivable portfolio and the sample mean account balance is $1250. The population standard deviation σ is known to be $250. (8 points)
  2. Construct a 95% confidence interval for the mean account balance of the population.
  3. What is the margin of error for estimating the mean account balance at the 95% confidence level.
  4. Construct a 95% confidence interval for the mean account balance of the population if the sample mean account balance is obtained from a random sample of 150 instead of 80.
  5. Based on the results from a. and c., what can you say about the effect of a larger sample size on the length of the confidence interval at the same confidence level?

Top Answer

for sample size 80, 95% confidence interval is (1195.2163, 1304.7837) for sample... View the full answer

Sign up to view the full answer

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

-

Educational Resources
  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

    Browse Documents
  • -

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question
Ask a homework question - tutors are online