SOLUTION: The following data represents the monthly service fee in dollars if a customer�s account falls below the minimum required $1,500 balance for a sample of 26 banks for direct-deposit

Question 203865: The following data represents the monthly service fee in dollars if a customer�s account falls below the minimum required $1,500 balance for a sample of 26 banks for direct-deposit customers. Bancost2
12 8 5 5 6 6 10 10 9 7 10 7 7
5 0 10 6 9 12 0 5 10 8 5 5 9
a) Construct a 95% confidence interval for the population mean monthly service fee in dollars if a customer�s account falls below the minimum required balance.
b) Interpret the interval constructed in (a)

Answer by stanbon(75887) (Show Source): You can put this solution on YOUR website!
The following data represents the monthly service fee in dollars if a customer�s account falls below the minimum required $1,500 balance for a sample of 26 banks for direct-deposit customers. Bancost2
12 8 5 5 6 6 10 10 9 7 10 7 7
5 0 10 6 9 12 0 5 10 8 5 5 9
a) Construct a 95% confidence interval for the population mean monthly service fee in dollars if a customer�s account falls below the minimum required balance.
The sample mean is 7.1538...
Sample standard dev. = 3.0554...
----
E = 1.96*s/sqrt(n) = 1.1745
----------
95% CI: 7.1538-1.1745 < u < 7.1538+1.1745
95% CI: 5.9793 < u < 8.3283
-----------------
b) Interpret the interval constructed in (a)
We are 95% confident the population mean lies
between those two numbers.
====================================
Cheers,
Stan H.

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