You inherit $5,000 from your Uncle Harold. The bad news is that the money must sit in a bank account for the next 10 years until
you can use it. The account earns 7.2% interest, compounded annually. This means that you will need to multiply the amount of money by 1.072 to determine how much money remains at the end of the next year.
HELPPP PLEASEE
HELPPP PLEASEE
1 answer:
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By proportionality, for any number 
, if T is multiplied by then the same goes for M.
a) M has been multiplied by
hence 
b) T has been divided by
hence 
a) M has been multiplied by
b) T has been divided by
Answer:
So on this case the 85% confidence interval would be given by (7.2;7.4)
Step-by-step explanation:
Previous concepts
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".
represent the sample mean
population mean (variable of interest)
represent the population standard deviation
n=830 represent the sample size
Solution to the problem
The confidence interval for the mean is given by the following formula:
(1)
Since the Confidence is 0.85 or 85%, the value of and
, and we can use excel, a calculator or a table to find the critical value. The excel command would be: "=-NORM.INV(0.075,0,1)".And we see that
Now we have everything in order to replace into formula (1):
So on this case the 85% confidence interval would be given by (7.2;7.4)