Question
Use the standard normal distribution or thet-distribution to construct a 90% confidence interval for the population mean. Justify your decision. If neither distribution can beused,
Use the standard normal distribution or thet-distribution to construct a
90% confidence interval for the population mean. Justify your decision. If neither distribution can beused, explain why. Interpret the results.
In a random sample of 12 mortgageinstitutions, the mean interest rate was 3.57% and the standard deviation was 0.36%. Assume the interest rates are normally distributed.
Which distribution should be used to construct the confidenceinterval?
A Use at-distribution because the interest rates are normally distributed and is known.
B. Use at-distribution because it is a randomsample, isunknown, and the interest rates are normally distributed.
Your answer is correct.
C. Use a normal distribution because the interest rates are normally distributed and is known.
D. Use a normal distribution because n<30 and the interest rates are normally distributed.
E. Cannot use the standard normal distribution or thet-distribution because isunknown, n<30,
and the interest rates are not normally distributed.
Select the correct choice belowand, ifnecessary, fill in any answer boxes to complete your choice.
A.The 90% confidence interval is
(Round to two decimal places asneeded.)
B.Neither distribution can be used to construct the confidence interval
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