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Confidence interval and test of hypothesis

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October 6th, 2022

Please help with the following problems.

The manager of a local bank wants to estimate the average amount held in checking accounts by the customers. A random sample of 30 customers is selected, and the results indicate a sample average of $4,750 and a sample standard deviation of $1,200.

a) Set a 95% confidence interval estimate of the average amount held in all checking accounts.

b) Test the hypothesis that the true average of the population is $4,000, against the hypothesis that it’s different.

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