Question

banking fees have received much attention during the recent economic recession as banks look for ways to re paid an average fee of $12.91 per month on their interest - bearing checking accounts. assume the population and b below. a. construct a 95% confidence interval to estimate the average fee for the population. the 95% confidence interval has a lower limit of $12.36 and an upper limit of $13.46. (round to the nearest cent as needed.) b. what is the margin of error for this interval? $ (round to the nearest cent as needed.)

Explanation:

Step1: Recall margin - of - error formula

The margin of error $E$ for a confidence interval is given by $E=\frac{\text{Upper Limit}-\text{Lower Limit}}{2}$.

Step2: Substitute values

We have the lower limit $L = 12.36$ and the upper limit $U=13.46$. So $E=\frac{13.46 - 12.36}{2}$.

Step3: Calculate

$E=\frac{1.1}{2}=0.55$.

Answer:

$0.55$