SOLUTION: A sample survey of 54 discount brokers showed that the mean price charged for a trade of 100 shares at $50 per share was $33.77. The survey is conducted annually. WIth the histiori

Question 404732: A sample survey of 54 discount brokers showed that the mean price charged for a trade of 100 shares at $50 per share was $33.77. The survey is conducted annually. WIth the histiorical data available, assume a known population standard deviation of $15.
a. Using the sample datta, what is the margin of error associated with a 95% confidence interval?
b. Develop 95% confidence interval for the mean price charged by discount brokers for a trade of 100 shares at $50 per share.

Answer by stanbon(75887) (Show Source): You can put this solution on YOUR website!
A sample survey of 54 discount brokers showed that the mean price charged for a trade of 100 shares at $50 per share was $33.77. The survey is conducted annually. WIth the historical data available, assume a known population standard deviation of $15.
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a. Using the sample data, what is the margin of error associated with a 95% confidence interval?
ME = (t-value of 0.95 with df = 100)[s/sqrt(n)]
ME = (1.9842)[15/sqrt(100)] = 2.9763
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b. Develop 95% confidence interval for the mean price charged by discount brokers for a trade of 100 shares at $50 per share.
95%CI: 33.77-2.9763 < u < 33.77+2.9763
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Cheers,
Stan H.

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