Statistics Central Limit Theorem

Question

A large loan company specializes in making car loans for used cars. The board of directors wants to estimtae the average amount loaned for used cars during last year. For a day in which 18 loans are made with mean amount is $9500 and the standard deviation is $1025, estimate the range of dollar values for the total amount of money loaned. (Round to nearest cent)

Answer 1

What does "estimtae" mean?

 

Does it mean this is really a spelling and proofreading question?

Answer 2

Since the average loan amount was already given ($9500)

 

we can figure the total loaned = ($9500x 18) ± $1025

 

range = $169978 to $172025

 

looking at individual sales, the standard deviation divided by the number will give us the individual range

 

So, $1025 / 18 = ±$57.94, which gives a range of $9442.06 to $9557.94