. Find the value of $1,300 invested at 4.2% interest compounded continuously for 5 years, 9 months. Round your final answer to t
1 answer:
The formula we use for continuous compounding is 
where P is the initial amount invested, r is the rate as a decimal, and t is time in years. Our P = 1300, our r = .042, and our t = 5.75 (9 months is 3/4 of a year, and 3/4 in a decimal is .75). Putting all that into our formula we have 
. We have to multiply those 2 powers together and then raise euler's number to it, then multiply by 1300. Doing all of that, we get the amount at the end to be $1,655.10
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Answer:
a) H0 : u = 28.5%
H1 : u < 28.5%
b) critical value = - 1.645
c) test statistic Z= - 1.41
d) Fail to reject H0
e) There is not enough evidence to support the professor's claim.
Step-by-step explanation:
Given:
P = 28.5% ≈ 0.285
X = 210
n = 800
Level of significance = 0.05
a) The null and alternative hypotheses are:
H0 : u = 28.5%
H1 : u < 28.5%
b) Given a 0.05 significance level.
This is a left tailed test.
The critical value =
The critical value = -1.645
c) Calculating the test statistic, we have:
Z = -1.41
d) Decision:
We fail to reject null hypothesis H0, since Z = -1.41 is not in the rejection region, <1.645
e) There is not enough evidence to support the professor's claim that the proportion of obese male teenagers decreased.
