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The Mean Replacement Time for a Random Sample of 12

question 27

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The mean replacement time for a random sample of 12 CD players is 8.6 years with a standard deviation of 5.8 years. Construct the 98% confidence interval for the population variance, σ2. Assume the data are normally distributed, and round to the nearest hundredth when necessary.


Definitions:

After-Tax Income

The amount of income left to an individual or business after all federal, state, and local taxes have been applied.

Consumption

The process by which goods and services are used up or utilized by individuals or entities.

Interest Rate

The proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage.

Investment

The allocation of resources, typically money, into assets with the expectation of generating income or profit in the future.

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