Susan deposited $10 in a savings account earning 5% interest, compounding annually. to the nearest cent, how much interest will
1 answer:
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Answer:
Step-by-step explanation:
1) Data given and notation
s represent the sample standard deviation
represent the sample variance
n=9 the sample size
Confidence=90% or 0.90
A confidence interval is "a range of values that’s likely to include a population value with a certain degree of confidence. It is often expressed a % whereby a population mean or variance lies between an upper and lower interval".
The margin of error is the range of values below and above the sample statistic in a confidence interval.
The Chi Square distribution is the distribution of the sum of squared standard normal deviates .
2) Calculating the confidence interval
The confidence interval for the population variance is given by the following formula:
On this case we need to find the sample standard deviation with the following formula:
The next step would be calculate the critical values. First we need to calculate the degrees of freedom given by:
Since the Confidence is 0.90 or 90%, the value of and
, and we can use excel, a calculator or a table to find the critical values.
The excel commands would be: "=CHISQ.INV(0.05,8)" "=CHISQ.INV(0.95,8)". so for this case the critical values are:
And replacing into the formula for the interval we got:
Not 100% sure this is correct but this seems correct.
