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muminat
3 years ago
6

A random sample of 12 graduates of a certain secretarial school typed an average of 79.3 words per minute with a standard deviat

ion of 7.8 words per minute. assuming a normal distribution for the number of words typed per minute, find a 95% confidence interval for the average number of words typed by all graduates of this school.
Mathematics
1 answer:
Crazy boy [7]3 years ago
4 0
We will use the following  formula to work out the confidence interval

Upper limit = μ + z* (σ/√n)
Lower limit = μ - z* (σ/√n)

We have
μ = 79.3
σ = 7.8
n = 12
z* is the z-score for 95% confidence level = 1.96

Substitute these into the formula, we have

Upper limit = 79.3 + 1.96 (7.8/√12) = 83.7
Lower limit = 79.3 - 1.96 )7.8/√12) = 74.9
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Two bonds are available on the market as follows: Bond 1: Face value $250, 5 years to maturity at a (simple) interest rate of 5%
tester [92]

The value of r is 5.95%

Step-by-step explanation:

The formula of the simple interest is I = P r t, where

  • P is the initial amount of money
  • r is the interest rate in decimal
  • t is the time

Bond 1:

∵ The face value is $250

∴ P = 250

∵ The value is in the bond for 5 years

∴ t = 5

∵ The simple interest rate is 5%

∴ r = 5% = 5 ÷ 100 = 0.05

∵ I = P r t

- Substitute the values of P, r and t in the rule

∴ I = (250)(0.05)(5) = 62.5

∴ The interest of Bond 1 is $62.5

Bond 2:

∵ The face value is $350

∴ P = 350

∵ The value is in the bond for 3 years

∴ t = 3

∵ The simple interest rate is r

∵ I = P r t

- Substitute the values of P and t in the rule

∴ I = (350)(r)(3) = 1050 r

∴ The interest of Bond 2 is 1050 r

∵ The both bonds yield the same interest to maturity

- Equate the interests of bonds 1 and 2

∵ 1050 r = 62.5

- Divide both sides by 1050

∴ r = 0.0595

- Multiply it by 100% to change it to percentage

∵ r = 0.0595 × 100% = 5.95%

∴ r = 5.95%

The value of r is 5.95%

Learn more:

You can learn more about interest in brainly.com/question/11149751

#LearnwithBrainly

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