Solution Found!
Credit ScoresUse the results of Section to answer the
Chapter 5, Problem 8AYU(choose chapter or problem)
Use the results of Problem 12 from Section 12.3 to answer the following questions:
(a) Predict the mean interest rate of all individuals whose credit score is 730.
(b) Construct a 90% confidence interval for the mean interest rate of all individuals whose credit score is 730.
(c) Predict the interest rate of Kaleigh, whose credit score is 730.
(d) Construct a 90% prediction interval for the interest rate of Kaleigh, whose credit score is 730.
(e) Explain the difference between the prediction made in parts (a) and (c).
Questions & Answers
QUESTION:
Use the results of Problem 12 from Section 12.3 to answer the following questions:
(a) Predict the mean interest rate of all individuals whose credit score is 730.
(b) Construct a 90% confidence interval for the mean interest rate of all individuals whose credit score is 730.
(c) Predict the interest rate of Kaleigh, whose credit score is 730.
(d) Construct a 90% prediction interval for the interest rate of Kaleigh, whose credit score is 730.
(e) Explain the difference between the prediction made in parts (a) and (c).
ANSWER:Step 1 of 8
A confidence interval is a range of values that is likely to contain the true population parameter of interest. It is calculated using sample data, and the confidence level indicates the probability that the interval contains the true population parameter.