Use the standard normal distribution or the t-distribution to construct a 90% confidence interval for the population mean. Justify your decision. If neither distribution can be used, explain why. Interpret the results. n a random sample of 11 mortgage institutions, the mean interest rate was 3.46% and the standard deviation was 0.46%. Assume the interest rates are normally distributed. Which distribution should be used to construct the confidence interval? OA. Use a t-distribution because the interest rates are normally distributed and σ is known. OB. Use a t-distribution because it is a random sample, is unknown, and the interest rates are normally distributed. OC. Use a normal distribution because n<30 and the interest rates are normally distributed. OD. Use a normal distribution because the interest rates are normally distributed and o is known. OE. Cannot use the standard normal distribution or the t-distribution because o is unknown, n<30, and the interest rates are not normally distributed. Select the correct choice below and, if necessary, fill in any answer boxes to complete your choice.
Use the standard normal distribution or the t-distribution to construct a 90% confidence interval for the population mean. Justify your decision. If neither distribution can be used, explain why. Interpret the results. n a random sample of 11 mortgage institutions, the mean interest rate was 3.46% and the standard deviation was 0.46%. Assume the interest rates are normally distributed. Which distribution should be used to construct the confidence interval? OA. Use a t-distribution because the interest rates are normally distributed and σ is known. OB. Use a t-distribution because it is a random sample, is unknown, and the interest rates are normally distributed. OC. Use a normal distribution because n<30 and the interest rates are normally distributed. OD. Use a normal distribution because the interest rates are normally distributed and o is known. OE. Cannot use the standard normal distribution or the t-distribution because o is unknown, n<30, and the interest rates are not normally distributed. Select the correct choice below and, if necessary, fill in any answer boxes to complete your choice.
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
Related questions
Question
Q6 please answer all the parts to this question
![Use the standard normal distribution or the t-distribution to construct a 90% confidence interval for the population mean. Justify your decision. If neither distribution can be used, explain why. Interpret the results.
In a random sample of 11 mortgage institutions, the mean interest rate was 3.46% and the standard deviation was 0.46%. Assume the interest rates are normally distributed.
Which distribution should be used to construct the confidence interval?
A. Use a t-distribution because the interest rates are normally distributed and o is known.
B. Use a t-distribution because it is a random sample, o is unknown, and the interest rates are normally distributed.
C. Use a normal distribution because n < 30 and the interest rates are normally distributed.
D. Use a normal distribution because the interest rates are normally distributed and o is known.
O E. Cannot use the standard normal distribution or the t-distribution because o is unknown, n<30, and the interest rates are not normally distributed.
Select the correct choice below and, if necessary, fill in any answer boxes to complete your choice.
A. The 90% confidence interval is (,).
(Round to two decimal places as needed.)
B. Neither distribution can be used to construct the confidence interval.
Interpret the results. Choose the correct answer below.
A. If a large sample of institutions are taken approximately 90% of them will have an interest rate between the bounds of the confidence interval.
B. It can be said that 90% of institutions have an interest rate between the bounds of the confidence interval.
C. With 90% confidence, it can be said that the population mean interest rate is between the bounds of the confidence interval.
D. Neither distribution can be used to construct the confidence interval.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F59d94971-c4ee-4188-b521-ed6cff9deaa9%2F7098472f-fb39-45ea-ab48-43820d16b725%2Fak497yk_processed.png&w=3840&q=75)
Transcribed Image Text:Use the standard normal distribution or the t-distribution to construct a 90% confidence interval for the population mean. Justify your decision. If neither distribution can be used, explain why. Interpret the results.
In a random sample of 11 mortgage institutions, the mean interest rate was 3.46% and the standard deviation was 0.46%. Assume the interest rates are normally distributed.
Which distribution should be used to construct the confidence interval?
A. Use a t-distribution because the interest rates are normally distributed and o is known.
B. Use a t-distribution because it is a random sample, o is unknown, and the interest rates are normally distributed.
C. Use a normal distribution because n < 30 and the interest rates are normally distributed.
D. Use a normal distribution because the interest rates are normally distributed and o is known.
O E. Cannot use the standard normal distribution or the t-distribution because o is unknown, n<30, and the interest rates are not normally distributed.
Select the correct choice below and, if necessary, fill in any answer boxes to complete your choice.
A. The 90% confidence interval is (,).
(Round to two decimal places as needed.)
B. Neither distribution can be used to construct the confidence interval.
Interpret the results. Choose the correct answer below.
A. If a large sample of institutions are taken approximately 90% of them will have an interest rate between the bounds of the confidence interval.
B. It can be said that 90% of institutions have an interest rate between the bounds of the confidence interval.
C. With 90% confidence, it can be said that the population mean interest rate is between the bounds of the confidence interval.
D. Neither distribution can be used to construct the confidence interval.
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 5 steps with 1 images
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Recommended textbooks for you
![MATLAB: An Introduction with Applications](https://www.bartleby.com/isbn_cover_images/9781119256830/9781119256830_smallCoverImage.gif)
MATLAB: An Introduction with Applications
Statistics
ISBN:
9781119256830
Author:
Amos Gilat
Publisher:
John Wiley & Sons Inc
![Probability and Statistics for Engineering and th…](https://www.bartleby.com/isbn_cover_images/9781305251809/9781305251809_smallCoverImage.gif)
Probability and Statistics for Engineering and th…
Statistics
ISBN:
9781305251809
Author:
Jay L. Devore
Publisher:
Cengage Learning
![Statistics for The Behavioral Sciences (MindTap C…](https://www.bartleby.com/isbn_cover_images/9781305504912/9781305504912_smallCoverImage.gif)
Statistics for The Behavioral Sciences (MindTap C…
Statistics
ISBN:
9781305504912
Author:
Frederick J Gravetter, Larry B. Wallnau
Publisher:
Cengage Learning
![MATLAB: An Introduction with Applications](https://www.bartleby.com/isbn_cover_images/9781119256830/9781119256830_smallCoverImage.gif)
MATLAB: An Introduction with Applications
Statistics
ISBN:
9781119256830
Author:
Amos Gilat
Publisher:
John Wiley & Sons Inc
![Probability and Statistics for Engineering and th…](https://www.bartleby.com/isbn_cover_images/9781305251809/9781305251809_smallCoverImage.gif)
Probability and Statistics for Engineering and th…
Statistics
ISBN:
9781305251809
Author:
Jay L. Devore
Publisher:
Cengage Learning
![Statistics for The Behavioral Sciences (MindTap C…](https://www.bartleby.com/isbn_cover_images/9781305504912/9781305504912_smallCoverImage.gif)
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…](https://www.bartleby.com/isbn_cover_images/9780134683416/9780134683416_smallCoverImage.gif)
Elementary Statistics: Picturing the World (7th E…
Statistics
ISBN:
9780134683416
Author:
Ron Larson, Betsy Farber
Publisher:
PEARSON
![The Basic Practice of Statistics](https://www.bartleby.com/isbn_cover_images/9781319042578/9781319042578_smallCoverImage.gif)
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](https://www.bartleby.com/isbn_cover_images/9781319013387/9781319013387_smallCoverImage.gif)
Introduction to the Practice of Statistics
Statistics
ISBN:
9781319013387
Author:
David S. Moore, George P. McCabe, Bruce A. Craig
Publisher:
W. H. Freeman