SOLUTION: Data on investments in the high-tech industry by venture capitalists are compiled by VentureOne Corporation and published in America’s Network Telecom Investor Supplement. A rand

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Question 923201: Data on investments in the high-tech industry by venture capitalists
are compiled by VentureOne Corporation and published in America’s Network Telecom Investor
Supplement. A random sample of 18 venture-capital investments in the fiber optics business sector
yielded the following data, in millions of dollars.
5.60 6.27 5.96 10.51 2.04 5.48 5.74 5.58 4.13
8.63 5.95 6.67 4.21 7.71 9.21 4.98 8.64 6.66
(a) Determine a 90% confidence interval for the mean amount, µ, of all venture-capital investments in
the fiber optics business sector, and interpret your answer. Assume that the population standard
deviation is $2.04 million. (The sum of the data is $113.97 million)
(b) Determine a 50% confidence interval for the mean amount, µ, of all venture-capital investments in
the fiber optics business sector, and interpret your answer.
(c) Determine the minimum sample size required to have a margin of error of $0.05 million with a 90%
confidence interval.
Answer by ewatrrr(24785) About Me  (Show Source):
You can put this solution on YOUR website!
18 venture-capital investments in the fiber optics business sector
Mean = 6.33 , standard deviation = 2.04 (also Pop sd)
90% confidence interval
ME = 1.74 (2.04/sqrt(18))
CI: 6.33-ME < u < 6.33 + ME
.....
50% confidence interval ...
ME = .689 (2.04/sqrt(18))
CI: 6.33-ME < u < 6.33 + ME
.......
minimum sample size required to have a margin of error of $0.05 million with a 90% confidence interval.
.05 = 1.645((2.04/sqrt(n))
n = +%281.645%2A2.04%2F.05%29%5E2
.......
 

DF	Probability, p 2-tailed			

	0.1	0.05	0.01	0.001

1	6.31	12.71	63.66	636.62

2	2.92	4.3	9.93	31.6

3	2.35	3.18	5.84	12.92

4	2.13	2.78	4.6	8.61

5	2.02	2.57	4.03	6.87

6	1.94	2.45	3.71	5.96

7	1.89	2.37	3.5	5.41

8	1.86	2.31	3.36	5.04

9	1.83	2.26	3.25	4.78

10	1.81	2.23	3.17	4.59

11	1.8	2.2	3.11	4.44

12	1.78	2.18	3.06	4.32

13	1.77	2.16	3.01	4.22

14	1.76	2.14	2.98	4.14

15	1.75	2.13	2.95	4.07

16	1.75	2.12	2.92	4.02

17	+highlight_green%281.74%29 	2.11	2.9	3.97

18	1.73	2.1	2.88	3.92