Find the Margin of Error $\$ 453.59 < \mu < \$ 874.69$

question 95

Multiple Choice

Find the margin of error.
-A savings and loan association needs information concerning the checking account balances of its local customers. A random sample of 14 accounts was checked and yielded a mean balance of $664.14 and a standard deviation of $297.29. Find a 98% confidence interval for the true mean checking account balance for local customers.

• A) \(\$ 453.59 < \mu < \$ 874.69\)
• B) \(\$ 492.52 < \mu < \$ 835.76\)
• C) \(\$ 455.65 < \mu < \$ 872.63\)
• D) \(\$ 493.71 < \mu < \$ 834.57\)

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Definitions:

Reinvested Interest

Reinvested interest is the compounding of interest by adding the payments back to the principal amount instead of paying it out, thereby increasing the total interest earned over time.

Simple Interest

Interest calculated only on the principal amount of a loan or investment, not on any previously earned interest.

Account Balance

The total amount of money present in an account at a given point in time, considering all credits and debits.

Funds

Capital set aside for specific purposes or investments.