A sample survey of 54 discount brokers showed that the
- a. Using the sample data, what is the margin of error associated with a 95% confidence interval?
- b. Develop a 95% confidence interval for the mean price charged by discount brokers for a trade of 100 shares at $50 per share.
a.
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Find the margin of error for 95% confidence level.
Answer to Problem 48SE
The margin of error for 95% confidence level is 4.
Explanation of Solution
Calculation:
The given information is that the sample of 54 discount brokers shows the mean price of the trade is $50 for 100 shares is $33.77 and the population standard deviation is $15.
The formula for margin of error is
From the “Table 8.1 value of
The value of margin of error is
Thus, the value of margin of error is 4.
b.
![Check Mark](/static/check-mark.png)
Find the 95% confidence interval for mean price charged by discount brokers for a trade of 100 shares at $50 per share.
Answer to Problem 48SE
The 95% confidence interval for mean price charged by discount brokers for a trade of 100 shares at $50 per share is ($29.77, $37.77).
Explanation of Solution
Calculation:
From part (a), the margin of error is 4.
The mean value for the 54 broker for trade of 100 shares at $50 per share is $33.77.
The value of confidence interval for population mean is
Thus, the 95% confidence interval for population mean is ($29.77, $37.77).
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Chapter 8 Solutions
Essentials Of Statistics For Business & Economics
- Glencoe Algebra 1, Student Edition, 9780079039897...AlgebraISBN:9780079039897Author:CarterPublisher:McGraw HillBig Ideas Math A Bridge To Success Algebra 1: Stu...AlgebraISBN:9781680331141Author:HOUGHTON MIFFLIN HARCOURTPublisher:Houghton Mifflin Harcourt
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