You are given the sample mean and the population standard deviation. Use this information to construct the 90% and 95% confidence intervals for the population mean. Interpret the results and compare the widths of the confidence intervals. From a random sample of 40 business days, the mean closing price of a certain stock was $109.06. Assume the population standard deviation is $9.73. Question content area bottom Part 1 The 90% confidence interval is (enter your response here,enter your response here). (Round to two decimal places as needed.) Part 2 The 95% confidence interval is (enter your response here,enter your response here). (Round to two decimal places as needed.) Part 3 Which interval is wider? Choose the correct answer below. The 90% confidence interval The 95% confidence interval Part 4 Interpret the results. A. You can be certain that the population mean price of the stock is either between the lower bounds of the 90% and 95% confidence intervals or the upper bounds of the 90% and 95% confidence intervals. B. You can be certain that the closing price of the stock was within the 90% confidence interval for approximately 36 of the 40 days, and was within the 95% confidence interval for approximately 38 of the 40 days. C. You can be 90% confident that the population mean price of the stock is between the bounds of the 90% confidence interval, and 95% confident for the 95% interval. D. You can be 90% confident that the population mean price of the stock is outside the bounds of the 90% confidence interval, and 95% confident for the 95% interval.

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018

18th Edition

ISBN:9780079039897

Author:Carter

Publisher:Carter

Chapter10: Statistics

Section10.3: Measures Of Spread

Problem 11PPS

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Question content area bottom

Part 1

The 90% confidence interval is

(enter your response here,enter your response here).

(Round to two decimal places as needed.)

Part 2

The 95% confidence interval is

(enter your response here,enter your response here).

(Round to two decimal places as needed.)

Part 3

Which interval is wider? Choose the correct answer below.

The 90% confidence interval

The 95% confidence interval

Part 4

Interpret the results.

You can be certain that the population mean price of the stock is either between the lower bounds of the 90% and 95% confidence intervals or the upper bounds of the 90% and 95% confidence intervals.

You can be certain that the closing price of the stock was within the 90% confidence interval for approximately

of the

days, and was within the 95% confidence interval for approximately

of the

days.

You can be 90% confident that the population mean price of the stock is between the bounds of the 90% confidence interval, and 95% confident for the 95% interval.

You can be 90% confident that the population mean price of the stock is outside the bounds of the 90% confidence interval, and 95% confident for the 95% interval.

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