PLEASE HELP!! Find the amount after 6 years if $1000 is invested at an annual rate of 4% compounded:

At a large Midwestern university, a simple random sample of 100 entering freshmen in 1993 found that 20 of the sampled freshmen

guajiro [1.7K]

Answer:

The 90% confidence interval for the difference of proportions is (0.01775,0.18225).

Step-by-step explanation:

Before building the confidence interval, we need to understand the central limit theorem and subtraction of normal variables.

Central Limit Theorem

The Central Limit Theorem establishes that, for a normally distributed random variable X, with mean $\mu$ and standard deviation $\sigma$ , the sampling distribution of the sample means with size n can be approximated to a normal distribution with mean $\mu$ and standard deviation $s = \frac{\sigma}{\sqrt{n}}$ .

For a skewed variable, the Central Limit Theorem can also be applied, as long as n is at least 30.

For a proportion p in a sample of size n, the sampling distribution of the sample proportion will be approximately normal with mean $\mu = p$ and standard deviation $s = \sqrt{\frac{p(1-p)}{n}}$

Subtraction between normal variables:

When two normal variables are subtracted, the mean is the difference of the means, while the standard deviation is the square root of the sum of the variances.

p1 -> 1993

20 out of 100, so:

$p_1 = \frac{20}{100} = 0.2$