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27 February, 00:14

For a sample of 54 discount brokers the average price of a $5,000 trade was $33.77 and the standard deviation was $15. Construct a 90% confidence interval and enter the upper bound for the interval. Hint, your answer should be larger than the one for the previous question since they begin with the same summary data. (Answer to two decimal places and do not include a $ sign).

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  1. 27 February, 00:30
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    Margin error=3.3574

    Confidence Interval = 37.1274

    Explanation:

    For confidence level 1-a

    (90/100) = 0.9

    1-0.9 = 0.1

    za/2 = 0.1/2

    0.05

    Therefore using the z-score table

    0.05 = 1.645

    The margin error is:

    1.645*15/Sqare root of 54

    =1.645*2.041

    =3.3574

    Confidence Interval

    33.77 - 3.3574 = 30.4126

    33.77+3.3574 = 37.1274
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