Using the information below, calculate the confidence interval, rounding your limits to 3 decimal places. Mean Std. Error Critical Value 2016 - 2011 -65.149 14.81 1.655 Lower limit: Upper limit: Interpret: With 90% confidence, we estimate the Select an answer mean difference mean mortgage payment proportion of mortgage payments in Select an answer 2011 2016 is between and more than that of Select an answer 2011 2016 .
Addition Rule of Probability
It simply refers to the likelihood of an event taking place whenever the occurrence of an event is uncertain. The probability of a single event can be calculated by dividing the number of successful trials of that event by the total number of trials.
Expected Value
When a large number of trials are performed for any random variable ‘X’, the predicted result is most likely the mean of all the outcomes for the random variable and it is known as expected value also known as expectation. The expected value, also known as the expectation, is denoted by: E(X).
Probability Distributions
Understanding probability is necessary to know the probability distributions. In statistics, probability is how the uncertainty of an event is measured. This event can be anything. The most common examples include tossing a coin, rolling a die, or choosing a card. Each of these events has multiple possibilities. Every such possibility is measured with the help of probability. To be more precise, the probability is used for calculating the occurrence of events that may or may not happen. Probability does not give sure results. Unless the probability of any event is 1, the different outcomes may or may not happen in real life, regardless of how less or how more their probability is.
Basic Probability
The simple definition of probability it is a chance of the occurrence of an event. It is defined in numerical form and the probability value is between 0 to 1. The probability value 0 indicates that there is no chance of that event occurring and the probability value 1 indicates that the event will occur. Sum of the probability value must be 1. The probability value is never a negative number. If it happens, then recheck the calculation.
One measure of the state of the economy is the amount of money homeowners pay on their mortgage each month. To determine the extent of change between this year and 5 years ago, a random sample of 150 homeowners was drawn. The monthly mortgage payments for each homeowner for this year and for 5 years ago was recorded (the amounts were adjusted so that we could compare constant dollars). One would like to use the data to estimate the mean difference in monthly mortgage payments with 90% confidence.
Which formula is appropriate for the scenario described?
- Using the information below, calculate the confidence interval, rounding your limits to 3 decimal places.
| Mean | Std. Error | Critical Value | |
| 2016 - 2011 | -65.149 | 14.81 | 1.655 |
Lower limit:
Upper limit:
- Interpret: With 90% confidence, we estimate the Select an answer mean difference mean mortgage payment proportion of mortgage payments in Select an answer 2011 2016 is between and more than that of Select an answer 2011 2016 .
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