The Standard Deviation for the Checking Account Balances Is Assumed

question 136

True/False

The standard deviation for the checking account balances is assumed known to be $357.50. Recently, a bank manager was interested in estimating the mean balance. To do this, she selected a random sample of 81 accounts and found a mean balance of $1,347.20. At a 95 percent confidence level, the lower limit for the confidence interval is $646.50.

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Definitions:

Substitutes

Products or services that can be used in place of one another; when the price of one increases, the demand for the other may increase as consumers switch to the cheaper option.

Negative

A term indicating something less than zero or lacking in positivity, often used in financial contexts.

Income Elasticities

Income elasticities measure how the quantity demanded of a good changes in response to a change in consumers' income.

Normal Goods

Goods for which demand increases as consumer income rises, and decreases as consumer income falls.