Question

Data are obtained from a random sample of assets and millions of dollars of 30 credit unions in the sample. It turned out to be 11.091. Assume that the sample standard deviation is 14.44. The population is assumed to be normally distributed. Find the margin of error.

a. 5.96
b. 3.68
c. 2.56
d. 1.84

Answer 1

The margin of error can be calculated using the formula: Margin of Error (EBM) = t * (sample standard deviation / square root of sample size). The correct option is A. 5.96.

Step-by-step explanation:

To find the margin of error, we can use the formula:
Margin of Error (EBM) = t * (sample standard deviation / square root of sample size)

In this case, the sample standard deviation is 14.44 and the sample size is 30. The critical value, t, can be determined based on the desired confidence level. Since the confidence level is not specified in the question, we cannot determine the exact margin of error. However, we can assume a 95% confidence level and use the critical value of 1.96 for a sample size of 30. Therefore, the margin of error will be:

Margin of Error (EBM) = 1.96 * (14.44 / √30)

Margin of Error (EBM) ≈ 5.96 (rounded to two decimal places)