Robert deposits $ 3000 in State Bank of India for 3 year which earn him an interest of 8%. How much money does have in TOTAL aft
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Answer:
a. CI=[128.79,146.41]
b. CI=[122.81,152.39]
c. As the confidence level increases, the interval becomes wider.
Step-by-step explanation:
a. -Given the sample mean is 137.6 and the standard deviation is 20.60.
-The confidence intervals can be constructed using the formula;
where:
is the sample standard deviation
is the s value of the desired confidence interval
we then calculate our confidence interval as:
Hence, the 95% confidence interval is between 128.79 and 146.41
b. -Given the sample mean is 137.6 and the standard deviation is 20.60.
-The confidence intervals can be constructed using the formula in a above;
Hence, the variable's 99% confidence interval is between 122.81 and 152.39
c. -Increasing the confidence has an increasing effect on the margin of error.
-Since, the sample size is particularly small, a wider confidence interval is necessary to increase the margin of error.
-The 99% Confidence interval is the most appropriate to use in such a case.