2)A local bank needs information concerning the savings account balances of its customers. A random sample...

2)A local bank needs information concerning the savings account balances of its customers. A random sample of 15 accounts was checked. The mean balance was $586.75 with a standard deviation of $256.20. Find a 95%confidence interval for the true mean. Assume that the account balances are normally distributed. Round to the nearest cent.

A) Determine the confidence interval

B) Would it be unusual to have a sample of 15 customer to have an average balance less than $400.00?

Explain your reasoning based on the interval you determined in part A.

Solutions

Expert Solution

given data are:-

sample mean () = 586.75

sample sd(s) = 256.20

sample size(n) = 15

degrees of freedom = (n-1) = (15-1) = 14

t critical value for df=14,alpha=0.05,both tailed test be:-

[ using t distribution table ]

a).the 95%confidence interval for the true mean is :-

b).YES, it would be unusual to have a sample of 15 customer to have an average balance less than $400.00.

because 400 is outside the confidence interval and lower bound of the confidence interval is 444.87 , which is greater than 400...so, it is unusual to have a sample of 15 customer to have an average balance less than $400.00

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orchestra answered 1 year ago

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