Pearson eText for An Introduction to Mathematical Statistics and Its Applications -- Instant Access (Pearson+)
Pearson eText for An Introduction to Mathematical Statistics and Its Applications -- Instant Access (Pearson+)
6th Edition
ISBN: 9780137549375
Author: Richard Larsen, Morris Marx
Publisher: PEARSON+
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Chapter 7.5, Problem 10Q

How much interest certificates of deposit ( CDs ) pay varies by financial institution and also by length of the investment. A large sample of national one-year CD offerings in 2009 showed an average interest rate of 1.84 and a standard deviation σ = 0.262 . A five-year CD ties up an investor’s money, so it usually pays a higher rate of interest. However, higher rates might cause more variability. The table lists the five-year CD rate offerings from n = 10 banks in the northeast United States. Find a 95% confidence interval for the standard deviation of five-year CD rates. Do these data suggest that interest rates for five-year CDs are more variable than those for one-year certificates?

Bank Interest Rate ( % )
Domestic Bank 2.21
Stonebridge Bank 2.47
Waterfield Bank 2.81
NOVA Bank 2.81
American Bank 2.96
Metropolitan National Bank 3.00
AIG Bank 3.35
iGObanking.com 3.44
Discover Bank 3.44
Intervest National Bank 3.49

Data from: Company reports.

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Chapter 7 Solutions

Pearson eText for An Introduction to Mathematical Statistics and Its Applications -- Instant Access (Pearson+)

Ch. 7.3 - If the random variable F has an F distribution...Ch. 7.3 - Prob. 12QCh. 7.3 - Show that as n, the pdf of a Student t random...Ch. 7.3 - Prob. 14QCh. 7.3 - Prob. 15QCh. 7.4 - Use Appendix Table A.2 to find the following...Ch. 7.4 - What values of x satisfy the following equations?...Ch. 7.4 - Which of the following differences is larger?...Ch. 7.4 - A random sample of size n=9 is drawn from a normal...Ch. 7.4 - Suppose a random sample of size n=11 is drawn from...Ch. 7.4 - Let Y and S denote the sample mean and sample...Ch. 7.4 - Cell phones emit radio frequency energy that is...Ch. 7.4 - The following table lists the typical cost of...Ch. 7.4 - Creativity, as any number of studies have shown,...Ch. 7.4 - How long does it take to fly from Atlanta to New...Ch. 7.4 - In a nongeriatric population, platelet counts...Ch. 7.4 - If a normally distributed sample of size n=16...Ch. 7.4 - Prob. 13QCh. 7.4 - Revenues reported last week from nine boutiques...Ch. 7.4 - What confidence is associated with each of the...Ch. 7.4 - The weather station at Dismal Swamp, California,...Ch. 7.4 - Recall the Bacillus subtilis data in Question...Ch. 7.4 - Recall Case Study 5.3.1. Assess the credibility of...Ch. 7.4 - MBAs R Us advertises that its program increases a...Ch. 7.4 - In addition to the Shoshoni data of Case Study...Ch. 7.4 - A manufacturer of pipe for laying underground...Ch. 7.4 - In athletic contests, a wide-spread conviction...Ch. 7.4 - Prob. 23QCh. 7.4 - Prob. 24QCh. 7.4 - Prob. 25QCh. 7.4 - Suppose that random samples of size n are drawn...Ch. 7.4 - On which of the following sets of data would you...Ch. 7.5 - Use Appendix Table A.3 to find the following...Ch. 7.5 - Evaluate the following probabilities: (a)...Ch. 7.5 - Find the value y that satisfies each of the...Ch. 7.5 - For what value of n is each of the following...Ch. 7.5 - For df values beyond the range of Appendix Table...Ch. 7.5 - Let Y1,Y2,...,Yn be a random sample of size n from...Ch. 7.5 - Start with the fact that (n1)S2/2 has a chi square...Ch. 7.5 - A random sample of size n=19 is drawn from a...Ch. 7.5 - How long sporting events last is quite variable....Ch. 7.5 - How much interest certificates of deposit (CDs)...Ch. 7.5 - Prob. 11QCh. 7.5 - (a) Use the asymptotic normality of chi square...Ch. 7.5 - If a 90% confidence interval for 2 is reported to...Ch. 7.5 - Prob. 14QCh. 7.5 - Prob. 15QCh. 7.5 - When working properly, the amounts of cement that...Ch. 7.5 - A stock analyst claims to have devised a...
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