3. 401(k) plans permit employees to shift part of their before-tax salaries into investments such as mutual funds. Employers typically match 50% of the employee's contribution up to about 6% of salary (Fortune, Dec. 28, 1992). One company, concerned with what is believed was a low employee participation rate in its 401(k) plan, sampled 30 other companies with similar plans and asked for their 401(k) participate rates. The following rates in percentages were obtained: 80 88 90 76 85 84 81 80 82 77 79 77 82 83 75 80 75 86 85 87 60 78 60 80 79 84 82 72 70 75 Use the information to construct a 95% confidence interval for the mean participation rate for all companies that have 401(k) plans. Interpret the interval in the context of this problem.
3. 401(k) plans permit employees to shift part of their before-tax salaries into investments such as mutual funds. Employers typically match 50% of the employee's contribution up to about 6% of salary (Fortune, Dec. 28, 1992). One company, concerned with what is believed was a low employee participation rate in its 401(k) plan, sampled 30 other companies with similar plans and asked for their 401(k) participate rates. The following rates in percentages were obtained: 80 88 90 76 85 84 81 80 82 77 79 77 82 83 75 80 75 86 85 87 60 78 60 80 79 84 82 72 70 75 Use the information to construct a 95% confidence interval for the mean participation rate for all companies that have 401(k) plans. Interpret the interval in the context of this problem.
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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Transcribed Image Text:3. 401(k) plans permit employees to shift part of their before-tax salaries into investments such as
mutual funds. Employers typically match 50% of the employee's contribution up to about 6% of salary
(Fortune, Dec. 28, 1992). One company, concerned with what is believed was a low employee
participation rate in its 401(k) plan, sampled 30 other companies with similar plans and asked for their
401(k) participate rates. The following rates in percentages were obtained:
80
88
90
76
85
84
81
80
82
77
79
77
82
83
75
80
75
86
85
87
60
78
60
80
79
84
82
72
70
75
Use the information to construct a 95% confidence interval for the mean participation rate for all
companies that have 401(k) plans.
Interpret the interval in the context of this problem.
Transcribed Image Text:3. 401(k) plans permit employees to shift part of their before-tax salaries into investments such as
mutual funds. Employers typically match 50% of the employee's contribution up to about 6% of salary
(Fortune, Dec. 28, 1992). One company, concerned with what is believed was a low employee
participation rate in its 401(k) plan, sampled 30 other companies with similar plans and asked for their
401(k) participate rates. The following rates in percentages were obtained:
80
88
90
76
85
84
81
80
82
77
79
77
82
83
75
80
75
86
85
87
60
78
60
80
79
84
82
72
70
75
Use the information to construct a 95% confidence interval for the mean participation rate for all
companies that have 401(k) plans.
Interpret the interval in the context of this problem.
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