solve: our health organization is interested in estimating the average value of outstanding accounts receivable. After selecting a sample of 100 accounts, suppose that the mean was $120 and the standard deviation was $40. Use these data to construct a 98% confidence interval. how do i solve?

Answer 1

Find table in the back of your statistics text labeled something like "areas under normal distribution" to find the proportion/probability (.01 for two-tailed) and its Z score (score in terms of standard deviations).

98% = mean ± 2.33 SEm

SEm = SD/√n