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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 500 dollars. Your advisor also tells you that, for the past 51 months, the scheme had incomes with an average value of 510 dollars and a standard deviation of 108 dollars. (a) Create a 99% confidence interval for the average monthly income of this scheme. (Round your answers to 4 decimal places, if needed.)

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 500 dollars. Your advisor also tells you that, for the past 51 months, the scheme had incomes with an average value of 510 dollars and a standard deviation of 108 dollars. (a) Create a 99% confidence interval for the average monthly income of this scheme. (Round your answers to 4 decimal places, if needed.)

MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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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 500 dollars. Your advisor also tells you that, for the past 51 months, the scheme had incomes with an average value of 510 dollars and a standard deviation of 108 dollars. (a) Create a 99% 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 500. No, since the interval contains 500. No, since the interval is completely above 500. Yes, since the interval is completely above 500. Check
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 500 dollars. Your advisor also tells you that, for the past 51 months, the scheme had incomes with an average value of 510 dollars and a standard deviation of 108 dollars. (a) Create a 99% 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 500. No, since the interval contains 500. No, since the interval is completely above 500. Yes, since the interval is completely above 500. Check
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