Answer to Question #302851 in Statistics and Probability for musau

Question

Lending institutions normally publish their base lending rates in the print media. However, the actual lending rates vary from one lender to another. To estimate the mean lending rate, a financial a advisor takes a random sample of nine loans. The lending rates (percent per annum) applied to the loans are given below:

  15.7, 16.8, 14.3, 18.8, 15.3, 16.6, 18.7, 16.5, 16.0

Assuming the lending rates are normally distributed, construct a 95% confidence interval for the mean lending rate.