A Random Sample of 26 Checking Accounts at a Bank

question 21

Short Answer

A random sample of 26 checking accounts at a bank showed an average daily balance of $300 and a standard deviation of $45. The balances of all checking accounts at the bank are normally distributed. Develop a 95% confidence interval estimate for the mean of the population.

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Definitions:

Factor Market

A factor market is a marketplace for the services of factors of production, such as labor, capital, and land, where these are bought and sold.

Circular Flow

An economic model depicting the continuous movement of money, goods and services, and factors of production between producers and consumers in the economy.

Household

An economic unit that consists of all individuals who occupy a housing unit, regardless of their relationship.

Business

Organized efforts by individuals or entities to produce, sell goods or provide services for profit.