A random sample of 100 people was selected from a population of customers at a local bank.The mean age of these customers was 40.If the population standard deviation is thought to be 5 years,the margin of error for a 95 percent confidence interval estimate is .98 years.

Question

Quizplus · Accepted Answer

The margin of error for a 95% confidence interval estimate is given by:

Margin of error = z*(standard deviation / sqrt(sample size))

Where z is the critical value from the standard normal distribution, which is 1.96 for a 95% confidence level.

Plugging in the given values, we get:

.98 = 1.96*(5/sqrt(100))

Solving for the margin of error, we get:

Margin of error = 1.96*(5/sqrt(100)) = 0.98

Therefore, the statement is true.

A Random Sample of 100 People Was Selected from a Population