Answer:
Step-by-step explanation:
Given that private colleges and universities rely on money contributed by individuals and corporations for their operating expenses
A recent survey of 8 private colleges in the United States revealed the following endowments (in millions of dollars)
Mean = 180.975 and std dev s = 143.042
Assuming a normal distribution we have 95% critical value is 1.96 and 99% critical value is 2.58
a) 95% Conf interval = Mean ±1.96* std error
=[tex](180.975-1.96(\frac{143.042}{\sqrt{8} } ,180.975+1.96(\frac{143.042}{\sqrt{8} })\\= (81.851, 280.098)[/tex]
Since sample size is very small confidence interval is wider.
b) 99% Conf interval = Mean ±2.58* std error
=[tex](180.975-2.58(\frac{143.042}{\sqrt{8} } ,180.975+2.58(\frac{143.042}{\sqrt{8} })\\= (50.50,311.45)[/tex]
Since sample size is very small confidence interval is wider.
