A Federal Bank Examiner Is Interested in Estimating the Mean

question 74

Multiple Choice

A federal bank examiner is interested in estimating the mean outstanding defaulted loans balance of all defaulted loans over the last three years.A random sample of 20 defaulted loans yielded a mean of $67,918 with a standard deviation of $16,552.40.Calculate a 90 percent confidence interval for the mean balance of defaulted loans over the past three years.

• A) [66,487,69,349]
• B) [39,299,96,537]
• C) [57,329,78,507]
• D) [61,829,74,007]
• E) [61,519,74,317]

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Definitions:

Return On Investment

A profitability measure that calculates the return of an investment relative to its cost.

Profit Center

A division or segment of a company that is responsible for generating its own revenue and profit.

Residual Income

The income that remains after all personal debts and expenses have been paid, or in business, after all capital costs are deducted from net revenues.

Internal Centralized Service Department

A department within an organization that provides essential services or support centrally to other departments, often aiming to increase efficiency and standardization.