If you put $1,500 in a savings account that pays 4% interest compounded continuously, how much money will you have in your accou
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Answer:
Step-by-step explanation:
Hello!
The variable of interest is X: ounces per cup dispensed by the cola-dispensing machine.
The population mean is known to be μ= 8 ounces and its standard deviation σ= 1.0 ounce. Assuming the variable has a normal distribution.
A sample of 34 cups was taken:
a. You need to calculate the Z-values corresponding to the top 5% of the distribution and the lower 5% of it. This means you have to look for both Z-values that separates two tails of 5% each from the body of the distribution:
The lower value will be:
= -1.648
You reverse the standardization using the formula
X[bar]= 7.72ounces
The lower control point will be 7.72 ounces.
The upper value will be:
X[bar]= 8.28ounces
The upper control point will be 8.82 ounces.
b. Now μ= 7.6, considering the control limits of a.
P(7.72≤X[bar]≤8.28)= P(X[bar]≤8.28)- P(X[bar]≤7.72)
P(Z≤(8.28-7.6)/(1/√34))- P(Z≤7.72-7.6)/(1/√34))
P(Z≤7.11)- P(Z≤0.70)= 1 - 0.758= 0.242
There is a 0.242 probability of the sample means being between the control limits, this means that they will be outside the limits with a probability of 1 - 0.242= 0.758, meaning that the probability of the change of population mean being detected is 0.758.
b. For this item μ= 8.7, the control limits do not change:
P(7.72≤X[bar]≤8.28)= P(X[bar]≤8.28)- P(X[bar]≤7.72)
P(Z≤(8.28-8.7)/(1/√34))- P(Z≤7.72-8.7)/(1/√34))
P(Z≤-2.45)- P(Z≤-5.71)=0.007 - 0= 0.007
There is a 0.007 probability of not detecting the mean change, which means that you can detect it with a probability of 0.993.
I hope it helps!