Use the standard normal distribution or the t-distribution to construct a 99% 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 18 mortgage institutions, the mean interest rate was 3.45% and the standard deviation was 0.49%. Assume the interest rates are normally distributed. Which distribution should be used to construct the confidence interval? O A. Use a t-distribution because it is a random sample, o is unknown, and the interest rates are normally distributed. O B. Use a t-distribution because the interest rates are normally distributed and o is known. OC. Use a normal distribution because n<30 and the interest rates are normally distributed. O D. Use a normal distribution because the interest rates are normally distributed and c 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. O A. The 99% confidence interval is (Round to two decimal places as needed.) O B. Neither distribution can be used to construct the confidence interval.
Use the standard normal distribution or the t-distribution to construct a 99% 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 18 mortgage institutions, the mean interest rate was 3.45% and the standard deviation was 0.49%. Assume the interest rates are normally distributed. Which distribution should be used to construct the confidence interval? O A. Use a t-distribution because it is a random sample, o is unknown, and the interest rates are normally distributed. O B. Use a t-distribution because the interest rates are normally distributed and o is known. OC. Use a normal distribution because n<30 and the interest rates are normally distributed. O D. Use a normal distribution because the interest rates are normally distributed and c 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. O A. The 99% confidence interval is (Round to two decimal places as needed.) O B. Neither distribution can be used to construct the confidence interval.
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Transcribed Image Text:115, the mean INerest rate was 3.45% and the standard deviation was 0.49%. Assume the interest rates a
Select the correct choice below and, if necessary, fill in any answer boxes to complete your choice.
O A. The 99% confidence interval is
(Round to two decimal places as needed.)
O B. Neither distribution can be used to construct the confidence interval.
Interpret the results. Choose the correct answer below.
O A. If a large sample of institutions are taken approximately 99% of them will have an interest rate between the bounds of the confidence interval.
B. With 99% confidence, it can be said that the population mean interest rate is between the bounds of the confidence interval.
O C. It can be said that 99% of institutions have an interest rate between the bounds of the confidence interval.
O D. Neither distribution can be used to construct the confidence interval.
Click to select your answer.
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Transcribed Image Text:Use the standard normal distribution or the t-distribution to construct a 99% 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 18 mortgage institutions, the mean interest rate was 3.45% and the standard deviation was 0.49%. Assume the interest rates are normally distributed.
Which distribution should be used to construct the confidence interval?
O A. Use a t-distribution because it is a random sample, o is unknown, and the interest rates are normally distributed.
O B. Use a t-distribution because the interest rates are normally distributed and o is known.
OC. Use a normal distribution because n< 30 and the interest rates are normally distributed.
O 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.
O A. The 99% confidence interval is ( ).
(Round to two decimal places as needed.)
O B. Neither distribution can be used to construct the confidence interval.
Click to select your answer.
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