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:

Target Profit

The desired amount of profit a company aims to achieve within a specific period, often driving decision-making and strategy.

Monthly

Pertaining to or occurring every month.

Unit Sales

The total number of individual items or units that a company sells.

Margin of Safety

The difference between actual sales and sales at the break-even point, indicating the risk level of not covering fixed costs.