# Question: The file P02 35 xlsx contains data from a survey of 500

The file P02_35.xlsx contains data from a survey of 500 randomly selected households. For this problem, consider this data set a simple random sample from all possible households, where the number of households in the population is well over 1,000,000.

a. Create a new variable, Total Income that is the sum of First Income and Second Income.

b. For each of the four variables Total Income, Monthly Payment, Utilities, and Debt, find the sample mean. If each of these is used as an estimate from the corresponding (unknown) population mean, is there any reason to believe that they either underestimate or overestimate the corresponding population means? Why or why not?

c. What are the (approximate) standard errors of the estimates in part b? How can you interpret these standard errors? Be as specific as possible. Is the finite population correction required? Why or why not?

d. Is it likely that the estimate of Total Income in part b is accurate to within $1500? Why or why not?

a. Create a new variable, Total Income that is the sum of First Income and Second Income.

b. For each of the four variables Total Income, Monthly Payment, Utilities, and Debt, find the sample mean. If each of these is used as an estimate from the corresponding (unknown) population mean, is there any reason to believe that they either underestimate or overestimate the corresponding population means? Why or why not?

c. What are the (approximate) standard errors of the estimates in part b? How can you interpret these standard errors? Be as specific as possible. Is the finite population correction required? Why or why not?

d. Is it likely that the estimate of Total Income in part b is accurate to within $1500? Why or why not?

**View Solution:**## Answer to relevant Questions

The file P02_10.xlsx contains midterm and final exam scores for 96 students in a corporate finance course. For this problem, assume that these 96 students represent a sample of the 175 students taking the course, and that ...Calculate the following probabilities using Excel. a. P(t10 ≥ 1.75), where t10 has a t distribution with 10 degrees of freedom.b. P(t100 ≥ 1.75), where t100 has a t distribution with 100 degrees of freedom. How do you ...Continuing Problem 5, generate a random sample of 50 players for each of the eight years in the P08_05.xlsx file. For each of these samples, construct a 95% confidence interval for the mean total salary for that year. What ...A market research consultant hired by a leading soft drink company wants to determine the proportion of consumers who favor its low-calorie brand over the leading low-calorie competitor in a particular geographic region. A ...A company that advertises on the Web wants to know which search engine its customers prefer as their primary search engine: Google or Bing. Specifically, the company wants to know whether the preference depends on the ...Post your question