a.
Verify that
a.
Explanation of Solution
Step-by-step procedure to obtain the average using Ti-83 calculator:
- Click on Stat.
- From EDIT, choose 1: Edit..
- In column L1, enter the data.
- Click on Stat.
- From CALC, choose 1: 1-Var Stats.
- Select 2nd > 1.
- Click Enter.
Output obtained is as follows:
From the output, the value of average is obtained as 35.9952
It is verified that
b.
Obtain the 75% confidence interval for
b.
Answer to Problem 23P
The 75% confidence interval for
Explanation of Solution
Here,
From Table 5: Areas of a Standard
The 75% confidence interval for
Therefore, the 75% confidence interval for
c.
Explain whether the annual profit of less than 30 thousand dollars is low when compared with other successful financial institutions.
c.
Explanation of Solution
From Part (b), the 75% confidence interval for
Since all the values in the interval are greater than 30, it is clear that the annual profit of less than 30 thousand dollars is low when compared with other successful financial institutions.
d.
Explain whether the annual profit of more than 40 thousand dollars is better when compared with other successful financial institutions.
d.
Explanation of Solution
From Part (b), the 75% confidence interval for
Here, all the values in the interval are less than 40. That is, 40 thousand dollars is greater than the upper bound of the interval. Therefore, the annual profit of more than 40 thousand dollars is better when compared with other successful financial institutions.
e.
Find the 90% confidence interval for
e.
Answer to Problem 23P
The 90% confidence interval for
The 90% confidence interval for
Explanation of Solution
Here,
From Table 5: Areas of a Standard Normal Distribution, the value corresponding to 0.0495 (which is approximately 0.05) is –1.65. That is,
The 90% confidence interval for
Therefore, the 90% confidence interval for
The 90% confidence interval for
Therefore, the 90% confidence interval for
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Chapter 7 Solutions
Understandable Statistics: Concepts and Methods
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