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Your investment advisor proposes a monthly income investment scheme which promises a variable income each month. You will invest in it only if you are assured an average monthly income of at least 560 dollars. Your advisor also tells you that, for the past 76 months, the scheme had incomes with an average value of 578 dollars and a standard deviation of 76 dollars. a) Create a 98% confidence interval for the average monthly income of this scheme. (Round your answers to 4 decimal places, if needed.) b) Based on this confidence interval, should you invest in this scheme? Yes, since the interval contains 560. Yes, since the interval is completely above 560. No, since the interval contains 560. No, since the interval is completely above 560.

Your investment advisor proposes a monthly income investment scheme which promises a variable income each month. You will invest in it only if you are assured an average monthly income of at least 560 dollars. Your advisor also tells you that, for the past 76 months, the scheme had incomes with an average value of 578 dollars and a standard deviation of 76 dollars. a) Create a 98% confidence interval for the average monthly income of this scheme. (Round your answers to 4 decimal places, if needed.) b) Based on this confidence interval, should you invest in this scheme? Yes, since the interval contains 560. Yes, since the interval is completely above 560. No, since the interval contains 560. No, since the interval is completely above 560.

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter10: Statistics
Section10.1: Measures Of Center
Problem 4GP
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Your investment advisor proposes a monthly income investment scheme which promises a variable income each month. You will invest in it only if you are assured an average monthly income of at least 560 dollars. Your advisor also tells you that, for the past 76 months, the scheme had incomes with an average value of 578 dollars and a standard deviation of 76 dollars. a) Create a 98% confidence interval for the average monthly income of this scheme. (Round your answers to 4 decimal places, if needed.) b) Based on this confidence interval, should you invest in this scheme? Yes, since the interval contains 560. Yes, since the interval is completely above 560. No, since the interval contains 560. No, since the interval is completely above 560.
Transcribed Image Text:Your investment advisor proposes a monthly income investment scheme which promises a variable income each month. You will invest in it only if you are assured an average monthly income of at least 560 dollars. Your advisor also tells you that, for the past 76 months, the scheme had incomes with an average value of 578 dollars and a standard deviation of 76 dollars. a) Create a 98% confidence interval for the average monthly income of this scheme. (Round your answers to 4 decimal places, if needed.) b) Based on this confidence interval, should you invest in this scheme? Yes, since the interval contains 560. Yes, since the interval is completely above 560. No, since the interval contains 560. No, since the interval is completely above 560.
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