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tangare [24]
4 years ago
15

Of 58 bank customers depositing a check, 15 received some cash back. (a) Construct a 90 percent confidence interval for the prop

ortion of all depositors who ask for cash back. (Round your answers to 4 decimal places.)
Business
1 answer:
vodomira [7]4 years ago
3 0

Answer:

0.1640 ≤ p ≤0.3532

Explanation:

Sample size (N) = 58 customers

Z-score for 90% interval (Z) = 1.645

The proportion of customers that received some cash back is given by:

p=\frac{15}{58}\\p=0.2586

The confidence interval for the proportion of all depositors who ask for cash back is determined by the following relationship:

p\pm Z*\sqrt{\frac{p*(1-p)}{N}}

Applying the given data:

0.2586\pm 1.645*\sqrt{\frac{0.2586*(1-0.2586)}{58}}\\0.2586\pm0.0946

The upper and lower limits are:

L=0.2586-0.0946\\L =0.1640 \\L=0.2586-0.0946\\L = 0.3532

Using a 90% confidence level, the interval for the proportion (p) is:

0.1640 ≤ p ≤0.3532

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Jury award = $100,000 ($50,000 for medical, $15,000 for lost wages and $35,000 for punitive damages)

Settlement offer = $50,000

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2 years ago
If the marginal propensity to consume is 0.80, what is the total implied increase in economic spending activity from a governmen
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In increasing government expenditure, total economic investment would be increased by the scale of the budget multiplier. In other terms, the expenditure equation indicates how much GDP can increase as government expenditure increases.

The spending multiplier can be expressed as \frac{1}{1-M P C} \text { or } \frac{1}{M P S}

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So, the total implied increase in economic spending is \$ 500

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