James recently got a credit card. The APR on the card is 19.8%. What is the monthly interest rate?
1 answer:
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Answer:
(-0.1059 ; - 0.0337)
Step-by-step explanation:
The data table is attached in the picture below:
These is a matched pair design ; which requires taking the difference of the two values for each sample :
The mean and standard deviation of the difference will be used to construct the confidence interval :
The mean of difference, dbar = Σx/n = - 0.0698
The standard deviation of difference, Sd ;
Sd = [√Σ(d - dbar)²/(n-1)] = 0.1054
n = sample size = 25
The confidence interval :
dbar ± [TCritical * Sd/√n]
Tcritical at 90% ; df = n -1 = 25 -1
Tcritical(90% , 24) = 1.1711
C.I = - 0.0698 ± (1.711 * 0.1054/√25)
C.I = - 0.0698 ± 0.0361
C.I = (-0.1059 ; - 0.0337)
