A Credit Company Has Gathered Information Regarding the Average Amount $\begin{array}{ll}&\text { Under } 30&\text { Over } 30\\&600 & 550 \\n&200 & 300 \\\sigma^2&361 & 400\end{array}$

question 188

Short Answer

A credit company has gathered information regarding the average amount owed by people under 30 years old and by people over 30 years. Independent random samples were taken from both age groups. You are given the following information.
$\begin{array}{ll}&\text { Under } 30&\text { Over } 30\\&600 & 550 \\n&200 & 300 \\\sigma^2&361 & 400\end{array}$ Construct a 95% confidence interval for the difference between the average amounts owed by the two age groups.

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Definitions:

Interest Expense

The cost incurred by an entity for borrowed funds, which may include the cost of bonds, loans, convertible debt, and lines of credit.

Interest Payable

The amount of interest expense that has been incurred during a period but not yet paid to creditors.

Adjusting Journal Entry

A type of entry made in the books of accounts to correct or update the financial statements to more accurately reflect the financial position of the business.

Prepaid Insurance Expense

An accounting term referring to payments made for insurance coverage before the coverage period starts, recorded as an asset on the balance sheet.