BADM 216-A random sample of 121 checking
BADM 216 Homework 4 Please solve the following questions related to Chapter 8 and 9:1. A random sample of 121 checking accounts at a bank showedan average daily balance of $280. The standard deviation of thepopulation is known to be $66. Please answer the followingquestions:(a)Find the standard error of the mean.(b Give a point estimate of the population mean.)(c)Construct a 90% confidence interval estimates for themean.[Hint: Please see Chap008 – Slides 5 -17 for formula andexample. Please also see page 337-341 in the textbook.]2. The Bureau of Labor Statistics reported that the averageyearly income of dentists in the year 2009 was $110,000. Dr.Smith thinks there has been a significant increase in the averageyearly income of dentists. He has a dataset of a sample of 81dentists, which was taken in 2010, showed an average yearlyincome of $120,000. Assume the standard deviation of thepopulation of dentists in 2010 is $36,000. Please answer thefollowing questions:(a Develop appropriate null and alternative hypotheses such) that rejection of H0 will support Dr. Smith’s argument.(b Compute the test statistic.)(c Determine the p-value; and at 95% confidence, test the ) hypotheses.[Hint: This is an One-tailed Hypothesis Testing. Please seeChap009 – Slides 17-30 for detailed explanation. Please also seepage 383-389 in the textbook.]3. A sample of 64 account balances from a credit companyshowed an average daily balance of $1,040. The standarddeviation of the population is known to be $200. We areinterested in determining if the mean of all account balances(i.e., population mean) is significantly different from $1,000.Questi Using the p-value approach at 95% confidence, test the on:above hypotheses.[Hint: This is a Two-tailed Hypothesis Testing. Please seeChap009 – Slides 31-41 for detailed explanation. Please also seepage 389-393 in the textbook.] Please type your answer and the steps of computation in a Wordfile. (Please DO NOT just write the answer. Show the stepsthat you solve the problems. Partial credit will be given basedon your computation steps.) Please save the file as “BADM216Hw4_Your First Name_Your Last Name.docx” and submit throughCanvas.Due Date: December 4th, 2016, Sunday, 11:00PM.
