A federal bank examiner is interested in estimating the mean outstanding defaulted loans balance of all defaulted loans over the last three years.A random sample of 20 defaulted loans yielded a mean of $67,918 with a standard deviation of $16,552.40.Calculate a 90% confidence interval for the mean balance of defaulted loans over the past three years.

Question

Quizplus · Accepted Answer

The 90% confidence interval is calculated using the sample mean, standard deviation, and the t-distribution for a sample size of 20. The interval [61,519 74,317] correctly reflects these calculations.

A Federal Bank Examiner Is Interested in Estimating the Mean