Answer:
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Answer:
2.74 x 10 square root of 3
Step-by-step explanation:
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Answer:
Step-by-step explanation:
Answer:
The test statistic for this test is 3.82.
Step-by-step explanation:
The null hypothesis is:
The alternate hypotesis is:
Our test statistic is:
In which X is the sample mean, 
is the value tested at the null hypothesis, 
is the standard deviation of the population and n is the size of the sample.
In this question:
So
The test statistic for this test is 3.82.
Continuous compounding is the mathematical limit that compound interest can reach.
It is the limit of the function A(1 + 1/n) ^ n as n approaches infinity. IN theory interest is added to the initial amount A every infinitesimally small instant.
The limit of (1 + 1/n)^n is the number e ( = 2.718281828 to 9 dec places).
Say we invest $1000 at daily compounding at yearly interest of 2 %. After 1 year the $1000 will increase to:-
1000 ( 1 + 0.02/365)^365 = $1020.20
with continuous compounding this will be
1000 * e^1 = $2718.28
