Average Childcare Costs Narrative

question 49

Essay

Average Childcare Costs Narrative
The public relations officer for a particular city claims the average monthly cost for childcare outside the home for a single child is $700. A potential resident is interested in whether the claim is correct. She obtains a random sample of 64 records and computes the average monthly cost of this type of childcare to be $689 with a standard deviation of $40.
-Refer to Average Childcare Costs Narrative. Perform the appropriate test of hypothesis for the potential resident using = 0.01.

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Definitions:

Balance

The amount of money in a financial repository, such as a checking or savings account, at any given moment.

Interest Rate

The percentage charged or earned on an amount of money over a period, generally expressed annually.

Loan Proceeds

The amount of money provided to a borrower by a lender, typically for a specific purpose or project, which the borrower is obligated to repay under agreed terms.

Compounded Quarterly

A method where interest earned is calculated and added to the principal amount every quarter, leading to interest on interest.