. Determine the 95% confidence interval for the difference in the mean number of months to repay the loans between those companies run by individuals and those run by groups.   between _____ and _______ months    2. Write a statement to interepret the confidence interval in question 1.   3. Based on your answers above, explain whether it can be determined that on average, the companies headed by individuals take longer to pay back their loans than those headed by groups.

MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
icon
Related questions
Question

A non-profit microfinance agency gives low-interest loans to people in developing countries to help them with their small businesses. The agency keeps track of the number of months it takes the small businesses to repay the loans; the distributions are normal, but for businesses headed by a single person, the standard deviation is 3 months whereas for businesses headed by a group of people, 2 months. The agency wants to determine if those businesses headed by a group of people pay off their loans faster than those businesses headed by individuals. In a sample of 50 of these business run by individuals, the average number of months to repay the loan was 42.3; in a sample of 50 businesses headed by a group, the average number of months was found to be 32.4. 

tip: you can use margin of error, std error, Za/2 to solve this on excel.

1. Determine the 95% confidence interval for the difference in the mean number of months to repay the loans between those companies run by individuals and those run by groups.

 

between _____ and _______ months 

 

2. Write a statement to interepret the confidence interval in question 1.

 

3. Based on your answers above, explain whether it can be determined that on average, the companies headed by individuals take longer to pay back their loans than those headed by groups.

Expert Solution
steps

Step by step

Solved in 2 steps with 1 images

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
Statistics
ISBN:
9781119256830
Author:
Amos Gilat
Publisher:
John Wiley & Sons Inc
Probability and Statistics for Engineering and th…
Probability and Statistics for Engineering and th…
Statistics
ISBN:
9781305251809
Author:
Jay L. Devore
Publisher:
Cengage Learning
Statistics for The Behavioral Sciences (MindTap C…
Statistics for The Behavioral Sciences (MindTap C…
Statistics
ISBN:
9781305504912
Author:
Frederick J Gravetter, Larry B. Wallnau
Publisher:
Cengage Learning
Elementary Statistics: Picturing the World (7th E…
Elementary Statistics: Picturing the World (7th E…
Statistics
ISBN:
9780134683416
Author:
Ron Larson, Betsy Farber
Publisher:
PEARSON
The Basic Practice of Statistics
The Basic Practice of Statistics
Statistics
ISBN:
9781319042578
Author:
David S. Moore, William I. Notz, Michael A. Fligner
Publisher:
W. H. Freeman
Introduction to the Practice of Statistics
Introduction to the Practice of Statistics
Statistics
ISBN:
9781319013387
Author:
David S. Moore, George P. McCabe, Bruce A. Craig
Publisher:
W. H. Freeman