Question

An increase in the rate of consumer savings is frequently tied to a lack of confidence in the economy and is said to be an indicator of a recessional tendency in the economy. A random sampling of n = 260 savings accounts in a local community showed a mean increase in savings account values of 7.2% over the past 12 months, with a standard deviation of 5.3%. Estimate the mean percent increase in savings account values over the past 12 months for depositors in the community. % Find the 95% margin of error (in %) for your estimate. (Round your answer to three decimal places.) %

          An increase in the rate of consumer savings is frequently tied
to a lack of confidence in the economy and is said to be an
indicator of a recessional tendency in the economy. A random
sampling of 
n = 260
 savings accounts in a local community showed a mean
increase in savings account values of 7.2% over the
past 12 months, with a standard deviation of 5.3%.
Estimate the mean percent increase in savings account values over
the past 12 months for depositors in the community.
 %
Find the 95% margin of error (in %) for your estimate. (Round
your answer to three decimal places.)
 %

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Added by Jon P.

Elementary Statistics a Step by Step Approach

Allan G. Bluman 9th Edition

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Solved by Expert David Nguyen

03/17/2022

Step 1

The standard error is calculated by dividing the standard deviation by the square root of the sample size. In this case, the standard deviation is 5.3% and the sample size is 260. Standard Error = 5.3 / √260 = 0.329% Show more…

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An increase in the rate of consumer savings is frequently tied to a lack of confidence in the economy and is said to be an indicator of a recessional tendency in the economy. A random sampling of n = 260 savings accounts in a local community showed a mean increase in savings account values of 7.2% over the past 12 months, with a standard deviation of 5.3%. Estimate the mean percent increase in savings account values over the past 12 months for depositors in the community. % Find the 95% margin of error (in %) for your estimate. (Round your answer to three decimal places.) %

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