Question

A bank is interested in determining the mean credit card balance for its customers. From a...

A bank is interested in determining the mean credit card balance for its customers. From a sample of 70 customers, the bank determined:
X-Bar = $9312
Sample Standard Deviation = $4007
Calculate the 95% confidence interval.

Math   Statistics-And-Probability   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

n =70

X bar =9312

S =4007

At 95% confidence level, the critical value of Z =1.96

Standard Error, SE =S/ =4007/ =478.92810376

Margin of error, MoE =Z*SE =1.96*478.92810376 =938.69908337

Lower bound of the interval =X bar - MoE =9312 - 938.69908337 =8373.3009166

Upper bound of the interval =X bar + MoE =9312 + 938.69908337 =10250.6990834

Therefore, the 95% confidence interval for the population mean credit balance, =[8373.30, 10250.70].

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
A major store is interested in estimating the mean amount its credit card customers spent on...
A major store is interested in estimating the mean amount its credit card customers spent on their first visit to the chain's new store. Fifteen credit card accounts (n=15) were randomly sampled and analyzed with the following results: X-bar = 50.5 and S = 20. Construct a 95% confidence interval for the mean amount its credit card customers spent on their first visit to the chain's new store. Interpret the results (the interval) you got.
A bank wishes to estimate the mean credit card balance owed by its customers. The population...
A bank wishes to estimate the mean credit card balance owed by its customers. The population standard deviation is estimated to be $700. If a 99% confidence interval is used and a margin of error of $100 is desired, how many customers should be sampled?
Kmart store chain is interested in estimating the mean amount its credit card customers spent on...
Kmart store chain is interested in estimating the mean amount its credit card customers spent on their first visit to the chain's new store in Mandurah. Fifteen credit card accounts were randomly sampled and analyzed with the following results: top enclose x = $50.50 and S = 20. Assuming the distribution of the amount spent on their first visit is approximately normal, construct a 95% confidence interval for the mean amount its credit card customers spent on their first visit...
A bank wants to estimate the average credit card balance that its customers owe. The standard...
A bank wants to estimate the average credit card balance that its customers owe. The standard deviation of the population is estimated at $ 300. If a 98% confidence interval is used and a $ 75 interval is desired, how many should be sampled? a.87 b.212 c.629 d.44
10. A bank wonders whether omitting the annual credit card fee for customers who charge at...
10. A bank wonders whether omitting the annual credit card fee for customers who charge at least $2,500 in a year will increase the amount charged on its credit cards. The bank makes this offer to a simple random sample of 200 of its credit card customers. It then compares how much these customers charge this year with the amount they charged last year. The mean increase in the sample is $346 and the standard deviation is $112. Give a...
7.30 Credit card fees. A bank wonders whether omitting the annual credit card fee for customers...
7.30 Credit card fees. A bank wonders whether omitting the annual credit card fee for customers who charge at least $5000 in a year would increase the amount charged on its credit card. The bank makes this offer to an SRS of 125 of its existing credit card customers. It then compares how much these customers charge this year with the amount that they charged last year. The mean is $685, and the standard deviation is $1128. (a) Is there...
A major department store chain is interested in estimating the average amount its credit card customers...
A major department store chain is interested in estimating the average amount its credit card customers spent on their first visit to the chain's new store in the mall. Fifteen credit card accounts were randomly sampled and analyzed with the following results: x = $50.50 and s2 = 400. A 95% confidence interval for the average amount the credit card customers spent on their first visit to the chain's new store in the mall is: a. $50.50 ± $10.12 b....
A major department store chain is interested in estimating the average amount its credit card customers...
A major department store chain is interested in estimating the average amount its credit card customers spent on their first visit to the chain's new store in the mall. Fifteen credit card accounts were randomly sampled and analyzed with the following results: = $70.50 and s 2 = 900. Construct a 90% confidence interval for the mean.
A major department store chain is interested in estimating the average amount its credit card customers...
A major department store chain is interested in estimating the average amount its credit card customers spent on their first visit to the chain’s new store in the mall. Twenty five credit card accounts were randomly sampled and analyzed with the following results: X = $85 and S = 28. Assuming the distribution of the amount spent on their first visit is approximately normal, find and interpret a 99% confidence interval for µ. Please explain and show work.
A local bank needs information concerning the savings account balances of its customers. A random sample...
A local bank needs information concerning the savings account balances of its customers. A random sample of 15 accounts was checked. The mean balance was $586.75 with a standard deviation of $256.20. Find a 95%confidence interval for the true mean. Assume that the account balances are normally distributed. Round to the nearest cent. A) Determine the confidence interval. B) Would it be unusual to have a sample of 15 customer to have an average balance less than $400.00? Explain your...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT