A Random Sample of 53 Observations Was Taken

question 24

Essay

A random sample of 53 observations was taken.The average in the sample was 90 with a variance of 400.
a.
Construct a 98% confidence interval for μ.
b.
Construct a 99% confidence interval for μ.
c.
Discuss why the 98% and 99% confidence intervals are different.
d.
What would you expect to happen to the confidence interval in Part a if the sample size was increased? Be sure to explain your answer.

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Definitions:

Analyze Each Transaction

The process of closely examining financial transactions to ensure they are accurately recorded in the correct accounts.

Journal

A journal is a detailed account that records all the financial transactions of a business, to be used later for classifying and summarizing into financial statements.

Ledger Accounts

A record in accounting that is used to aggregate monetary transactions by account, monitoring debits and credits over a period.

Journal Entries

The recorded transactions in the financial books of a company, serving as the initial step in the accounting cycle.