len bought a new car for $22,500. after a few years he sold the car at a discount of 25% what are the selling price of the car?
2 answers:
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Answer:
And that represent the proportion of failures.
The confidence interval for the mean is given by the following formula:
If we replace the values obtained we got:
The 99% confidence interval would be given by (0.0475;0.2185)
Step-by-step explanation:
Previous concept
A confidence interval is "a range of values that’s likely to include a population value with a certain degree of confidence. It is often expressed a % whereby a population means lies between an upper and lower interval".
The margin of error is the range of values below and above the sample statistic in a confidence interval.
Normal distribution, is a "probability distribution that is symmetric about the mean, showing that data near the mean are more frequent in occurrence than data far from the mean".
The population proportion have the following distribution
Solution to the problem
In order to find the critical value we need to take in count that we are finding the interval for a proportion, so on this case we need to use the z distribution. Since our interval is at 99% of confidence, our significance level would be given by and
. And the critical value would be given by:
The proportion estimated would be:
And that represent the proportion of failures.
The confidence interval for the mean is given by the following formula:
If we replace the values obtained we got:
The 99% confidence interval would be given by (0.0475;0.2185)