A Federal Bank Examiner Is Interested in Estimating the Mean

question 74

Multiple Choice

A federal bank examiner is interested in estimating the mean outstanding defaulted loans balance of all defaulted loans over the last three years.A random sample of 20 defaulted loans yielded a mean of $67,918 with a standard deviation of $16,552.40.Calculate a 90 percent confidence interval for the mean balance of defaulted loans over the past three years.

• A) [66,487,69,349]
• B) [39,299,96,537]
• C) [57,329,78,507]
• D) [61,829,74,007]
• E) [61,519,74,317]

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Definitions:

Inaccurate Interpretations

Misunderstandings or wrong conclusions drawn from data, events, or communications, often due to bias, lack of information, or miscommunication.

Understanding

The process of comprehending concepts, situations, or the perspectives of others.

Worldviews

Broad frameworks or sets of beliefs through which individuals interpret the world and their place within it.

Self-fulfilling Prophecy

A belief or expectation that influences actions in a way that causes the belief to become true.