Question: A simple random sample of 80 customers is selected from an account receivable portfolio and the sample mean account balance is $1250. The population standard

  1. A simple random sample of 80 customers is selected from an account receivable portfolio and the sample mean account balance is $1250. The population standard deviation is known to be $250. (8 points)
  2. Construct a 95% confidence interval for the mean account balance of the population.
  3. What is the margin of error for estimating the mean account balance at the 95% confidence level.
  4. Construct a 95% confidence interval for the mean account balance of the population if the sample mean account balance is obtained from a random sample of 150 instead of 80.
  5. Based on the results from a. and c., what can you say about the effect of a larger sample size on the length of the confidence interval at the same confidence level?

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