A large loan company specializes in making auto loans.The board of directors wants to estimate the average amount loaned for cars during the past year.The company takes a simple random sample of 225 customer files and calculates a mean of $8,200.Assume that from past records we know that = $750.

Confidence Level Z-value Margin of Error

90% 1.645 82.25

95% 1.96 98

98% 2.33 116.5

99% 2.575 128.75

Sample size 225

Sample mean 8200

Population Std Dev 750

What is the point estimate for the population mean?

With .95 probability, what statement can be made about the sampling error of this point estimate?

With .99 probability, what statement can be made about the sampling error of this point estimate?