1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
IrinaVladis [17]
3 years ago
9

In an article about disinflation, various investments were examined. The investments included stocks, bonds, and real estate. Su

ppose that a random sample of 200 rates of return on real estate investments was computed and recorded. Assuming that the standard deviation of all rates of return on real estate investments is 2.25%, estimate an interval for the mean rate of return on all real estate investments with 95% confidence
Interpret the estimate.
Mathematics
1 answer:
kykrilka [37]3 years ago
3 0

Answer:

Step-by-step explanation:

Using the formula for calculating the confidence interval to estimate an interval for the mean rate of return on all real estate investments with 95% confidence;

Confidence Interval = xbar±(Z*S/√n)

xbar is the mean = 20%(assumed since we are not given)

n is the sample size = 200

S is the standard deviation = 2.25%

Z is the Z score at 95% confidence interval = 1.960

Confidence Interval = 20±(1.96*2.25/√200)

Confidence Interval = 20±(1.96*2.25/14.14)

Confidence Interval = 20±(1.96*0.159)

Confidence Interval = 20±0.312

Confidence Interval = (20-0.312, 20+0.312)

Confidence Interval = (19.688, 20.312)

Hence the interval for the mean rate of return on all real estate investments with 95% confidence is 19.688<x<20.312.

This means that the minimum rate of return on investment is 19.688% and the maximum rate of return on investment is 20.312%.(assuming 20% as the mean)

You might be interested in
A simple random sample of size n is drawn from a population that is normally distributed. The sample​ mean, x overbar​, is found
joja [24]

Answer:

(a) 80% confidence interval for the population mean is [109.24 , 116.76].

(b) 80% confidence interval for the population mean is [109.86 , 116.14].

(c) 98% confidence interval for the population mean is [105.56 , 120.44].

(d) No, we could not have computed the confidence intervals in parts​ (a)-(c) if the population had not been normally​ distributed.

Step-by-step explanation:

We are given that a simple random sample of size n is drawn from a population that is normally distributed.

The sample​ mean is found to be 113​ and the sample standard​ deviation is found to be 10.

(a) The sample size given is n = 13.

Firstly, the pivotal quantity for 80% confidence interval for the population mean is given by;

                               P.Q. =  \frac{\bar X-\mu}{\frac{s}{\sqrt{n} } }  ~ t_n_-_1

where, \bar X = sample mean = 113

             s = sample standard​ deviation = 10

             n = sample size = 13

             \mu = population mean

<em>Here for constructing 80% confidence interval we have used One-sample t test statistics as we don't know about population standard deviation.</em>

<u>So, 80% confidence interval for the population mean, </u>\mu<u> is ;</u>

P(-1.356 < t_1_2 < 1.356) = 0.80  {As the critical value of t at 12 degree

                                          of freedom are -1.356 & 1.356 with P = 10%}  

P(-1.356 < \frac{\bar X-\mu}{\frac{s}{\sqrt{n} } } < 1.356) = 0.80

P( -1.356 \times }{\frac{s}{\sqrt{n} } } < {\bar X-\mu} < 1.356 \times }{\frac{s}{\sqrt{n} } } ) = 0.80

P( \bar X-1.356 \times }{\frac{s}{\sqrt{n} } } < \mu < \bar X+1.356 \times }{\frac{s}{\sqrt{n} } } ) = 0.80

<u>80% confidence interval for </u>\mu = [ \bar X-1.356 \times }{\frac{s}{\sqrt{n} } } , \bar X+1.356 \times }{\frac{s}{\sqrt{n} } }]

                                           = [ 113-1.356 \times }{\frac{10}{\sqrt{13} } } , 113+1.356 \times }{\frac{10}{\sqrt{13} } } ]

                                           = [109.24 , 116.76]

Therefore, 80% confidence interval for the population mean is [109.24 , 116.76].

(b) Now, the sample size has been changed to 18, i.e; n = 18.

So, the critical values of t at 17 degree of freedom would now be -1.333 & 1.333 with P = 10%.

<u>80% confidence interval for </u>\mu = [ \bar X-1.333 \times }{\frac{s}{\sqrt{n} } } , \bar X+1.333 \times }{\frac{s}{\sqrt{n} } }]

                                              = [ 113-1.333 \times }{\frac{10}{\sqrt{18} } } , 113+1.333 \times }{\frac{10}{\sqrt{18} } } ]

                                               = [109.86 , 116.14]

Therefore, 80% confidence interval for the population mean is [109.86 , 116.14].

(c) Now, we have to construct 98% confidence interval with sample size, n = 13.

So, the critical values of t at 12 degree of freedom would now be -2.681 & 2.681 with P = 1%.

<u>98% confidence interval for </u>\mu = [ \bar X-2.681 \times }{\frac{s}{\sqrt{n} } } , \bar X+2.681 \times }{\frac{s}{\sqrt{n} } }]

                                              = [ 113-2.681 \times }{\frac{10}{\sqrt{13} } } , 113+2.681 \times }{\frac{10}{\sqrt{13} } } ]

                                               = [105.56 , 120.44]

Therefore, 98% confidence interval for the population mean is [105.56 , 120.44].

(d) No, we could not have computed the confidence intervals in parts​ (a)-(c) if the population had not been normally​ distributed because t test statistics is used only when the data follows normal distribution.

6 0
3 years ago
Travelling with a current, a boat covers a distance 1.5times greater than travelling against the current in the same amount of t
slega [8]
Let the speed of the current equal c
and the speed of the boat in still water equal b.

b + c = 1.5 (b - c)
b + c = 1.5b - 1.5c
0.5b = 2.5c
b = 5c

The speed of the current is 1.5 mph so
b = 5 * 1.5 = 7.5 mph
3 0
2 years ago
Jose and a group of friends bought concert tickets for $257. The booking agency also charged a fee, bringing the
Romashka [77]

7%

7% of 257= 17.99

17.99=17.99

3 0
3 years ago
Read 2 more answers
Someone help me with 1&amp;2?
g100num [7]
1. 60 because 5 x 12 = 60

2. 84 is the next one because 14 x 6 = 84 

(if number two is wrong forgive me)


7 0
3 years ago
Can someone please help I will give brainliest if answer is right and 30 points and please no links seriously
max2010maxim [7]

Answer:

letter D

Step-by-step explanation:

hope this helps

6 0
3 years ago
Read 2 more answers
Other questions:
  • Paul has 144 army man and his toy box into six equal groups for battle how many army men are in each group
    11·2 answers
  • Is 3x+2y=6 the standard form of y = 3/2 x +3
    10·1 answer
  • HoConjecture #1- The sum or difference of two rational numbers is always?
    12·1 answer
  • Solve the system of linear equations by substitution.<br><br> y−x=0<br> 2x−5y=9
    5·1 answer
  • PLEASE HELP!!!!! 1.) Line a passes through points (-2, 1) and (2, 9). Write an equation in slope intercept form that is parallel
    7·2 answers
  • Find the area of a circle if its circumference is 10 pi
    9·1 answer
  • Ill mark brainlist plss help
    5·2 answers
  • What is the image point of (4, - 7) after a translation right 4 units and up 5 units?
    10·1 answer
  • What is the constant of proportionality between yyy and xxx in the graph?
    7·2 answers
  • Will be deleted at 3:30
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!