Question

A sample survey of discount brokers showed that the mean price charged for a trade of shares at per share was . The survey is conducted annually. With the historical data available, assume a known population standard deviation of . a. Using the sample data, what is the margin of error associated with a confidence interval (to decimals)

Answer 1

Using the z-distribution, it is found that the margin of error of the confidence interval is:

$M = z\frac{\sigma}{\sqrt{n}}$

In this problem, it is stated that the population standard deviation is known, thus, the z-distribution is used.

The margin of error of a z-confidence interval is given by:

$M = z\frac{\sigma}{\sqrt{n}}$

In which:

• z is the critical value.
• $\sigma$ is the population standard deviation.
• n is the sample size.

A similar problem is given at https://brainly.com/question/25214883