Answer:
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Answer:
Confidence Interval in 95% confidence level for the quality rating is (6.06,7.46)
Step-by-step explanation:
Confidence Interval can be calculated using the formula M±ME where
- M is the mean of the sample
- ME is the margin of error in a given confidence level
Using the sample obtained from 50 business travelers we get
- Mean of the sample is 6.76
- standard deviation of the sample is 2.526
Margin of error (ME) around the mean using the formula
ME=
where
- z is the corresponding statistic in 95% confidence level (1.96)
- s is the standard deviation of the sample (2.526)
- N is the sample size (50)
Using the numbers in the formula we get:
ME=
≈ 0.70
Then the confidence interval becomes 6.76±0.70
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- <em>O</em><em>p</em><em>t</em><em>i</em><em>o</em><em>n</em><em> </em><em>B</em><em> </em><em>i</em><em>s</em><em> </em><em>c</em><em>o</em><em>r</em><em>r</em><em>e</em><em>c</em><em>t</em><em>!</em><em>!</em><em>~</em>
Principal P = $500, Rate = 3 % = 3/100 = 0.03 would assume per year,
Time t = 6 months = (6/12) year = 0.5 year.
Simple Interest, I = P*r*t
= 500*0.03*0.5 = 7.5
And so therefore your answer is 7.5