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
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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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.
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