Mark is considering opening a money market account. What is an issue that he needs to be aware of when comparing a money market
1 answer:
You might be interested in
<u>Solution and Explanation:</u>
The following journal entries will be passed in the book sof fasteners Inc., Co., which is a supplier of buttons and zippers for clothing
Date Accounts Titles and Explanation Post Ref Debit Credit
1 Nov-21 Notes receivable $ 72,000
Accounts receivable-McKenna Outer Wear Co. $ 72,000
2 Dec-31 Interest receivable $720
Interest revenue $ 320
3 Jan-20 Cash $ 73080
Interest revenue $360
Interest receivable $720
Notes receivable $72,000
Note: the figures have been calculated and rounded off in the nearest dollar amount.
Answer:
1) We need a random sample. For this case we assume that the sample selected was obtained using the simple random sampling method.
2) We need to satisfy the following inequalities:
So then we satisfy this condition
3) 10% condition. For this case we assume that the random sample selected n represent less than 10% of the population size N . And for this case we can assume this condition.
So then since all the conditions are satisfied we can conclude that we can apply the normal approximation given by:
So then the answer for this case would be:
a. Yes.
Explanation:
For this case we assume that the question is: If in the experiment described we can use the normal approximation for the proportion of interest.
For this case we have a sample of n =25
And we are interested in the proportion of registered students that spend more than 20 minutes to get to school.
X = 13 represent the number of students in the sample selected that have a time more than 20 min.
And then the estimated proportion of interest would be:
And we want to check if we can use the normal approximation given by:
So in order to do this approximation we need to satisfy some conditions listed below:
1) We need a random sample. For this case we assume that the sample selected was obtained using the simple random sampling method.
2) We need to satisfy the following inequalities:
So then we satisfy this condition:
3) 10% condition. For this case we assume that the random sample selected n represent less than 10% of the population size N . And for this case we can assume this condition.
So then since all the conditions are satisfied we can conclude that we can apply the normal approximation given by:
So then the answer for this case would be:
a. Yes.