A. we use the z statistic to solve this problem
z = (x – u) / s
We calculate the value of the sample mean u and standard deviation
s:
u = $30 * 304 = $9120
s = $21 * 304 = $6384
z = (9,600 – 9120) / 6384
z = 0.075
From the normal tables using right tailed test,
P = 0.47
B. At worst 11% means P = 0.11, so the z value at this is
z = -1.23
-1.23 = (x – 9120) / 6384
x = 1267.68
CI is congruent to AI
Step-by-step explanation:
Congruent means they are identical, CI and AI are identical
1st year 500* 0.03 = 15+500=515
2nd year 515*0.03= 15.45 + 515 = 530.45
3rd year 530.45*0.03= 15.9135 + 530.45 = 546.3635
4th year 546.3635 * 0.03 = 16.390905 + 546.3635 = 562.754405
562.754405