Auditors of Independent Bank are interested in comparing the reported value of all 1775 customer savings account balances with their own findings regarding the actual value of such assets. Rather than reviewing the records of each savings account at the bank, the auditors randomly selected a sample of 100 savings account balances from the frame. The sample mean and sample standard deviations were $505.75 and 360.95, respectively.
(A) Construct a 90% confidence interval for the total value of all savings account balances within this bank. Assume that the population consists of all savings account balances in the frame.
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(B) Interpret the 90% confidence interval constructed in (A).
What will be an ideal response?
N = 1775, n = 100, 
= 505.75, s = 360.95, t– multiple = 1.6604, 
= ($719,326.70, $1,004,085.8)
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(B) We are 90% confident that the total balance of all 1775 savings account balances within the bank is between approximately $791,327 and $1,004,086.
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