stockbroker allocated \$100,000 to an account earning per year compounded continuously. If no withdrawals are made, how much was
1 answer:
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Answer:
95% two-sided confidence interval on the true mean breaking strength is (94.8cm, 99.2cm)
Step-by-step explanation:
Our sample size is 11.
The first step to solve this problem is finding our degrees of freedom, that is, the sample size subtracted by 1. So
.
Then, we need to subtract one by the confidence level and divide by 2. So:
Now, we need our answers from both steps above to find a value T in the t-distribution table. So, with 10 and 0.025 in the two-sided t-distribution table, we have
Now, we find the standard deviation of the sample. This is the division of the standard deviation by the square root of the sample size. So
Now, we multiply T and s
cm
For the upper end of the interval, we add the sample mean and M. So the upper end of the interval here is
cm
So
95% two-sided confidence interval on the true mean breaking strength is (94.8cm, 99.2cm).