Amount Financed (m) = $1,860 Number of Payments per year (y) = 12 Number of Payments (n) = 36 Total Interest (c) = $350.00

1 answer:

Luda [366]3 years ago

8 0

Hi there
The formula to find I (ARP)

I=(2yc)/(m×(1+n)
I=(2×12×350)÷(1,860×(1+36))
I=0.1221×100
I=12.21%

Good luck!

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Rom4ik [11]

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Harrizon [31]

Using confidence interval concepts, it is found that:

a) The point estimate is the sample mean.

b) The confidence interval is: $\overline{x} \pm T\frac{s}{n}$

c) If $1411 is between the bounds of the interval yes, otherwise no.

--------------

At item a, it asks to provide a point estimate for the population mean, which is the sample mean $\overline{x}$

--------------

Item b:

In the spreadsheet, it is possible to find the <em>standard deviation for the sample</em>, thus, the t-distribution is used.
The confidence interval will be given by:

$\overline{x} \pm T\frac{s}{n}$

In which:

$\overline{x}$ is the sample mean.
T is the critical value, from the t-distribution, with a two-tailed area of $\frac{1 - 0.95}{2} = 0.025$ and n-1 degrees of freedom.
s is the standard deviation for the sample.
n is the sample size.