Use the given degree of confidence and sample data to construct a confidence interval for the population mean µ. Assume that the population has a normal distribution.
-A savings and loan association needs information concerning the checking account balances of its local customers. A random sample of 14 accounts was checked and yielded a mean balance of $664.14 and a standard deviation of $297.29. Find a 98% confidence interval for the true mean checking account balance for local customers.
A) $\$ 492.52

Question

Use the given degree of confidence and sample data to construct a confidence interval for the population mean µ. Assume that the population has a normal distribution.
-A savings and loan association needs information concerning the checking account balances of its local customers. A random sample of 14 accounts was checked and yielded a mean balance of $664.14 and a standard deviation of $297.29. Find a 98% confidence interval for the true mean checking account balance for local customers. 
A) $\$ 492.52 < \mu < \$ 835.76$
B) $\$ 493.71 < \mu < \$ 834.57$
C) $\$ 453.59 < \mu < \$ 874.69$
D) $\$ 455.65 < \mu < \$ 872.63$

Quizplus · Accepted Answer

The 98% confidence interval is calculated using the t-distribution due to the small sample size (n=14). The correct interval is $\$ 453.59 < \mu < \$ 874.69$.

Use the Given Degree of Confidence and Sample Data to Construct