### Calculate interval estimate for jones actual account balance

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##### Reference no: EM131142099

During the recession that began in 2008, not only did some people stop making house payments, but they also stopped making payments for local  government services such as trash collection and water and sewer services.  The following data have been collected by an accountant who is performing  an audit of account balances for a major city billing department. The  population from which the data were collected represents those accounts for  which the customer had indicated the balance was incorrect. The dependent  variable, y, is the actual account balance as verified by the accountant. The  independent variable, x, is the computer-generated account balance.

c. The computer-generated balance for Timothy Jones is listed as 100 in  the computer-generated account record. Calculate a 90% interval
estimate for Mr. Jones's actual account balance.

d. Calculate also a 90% interval estimate for the average of all  customers' actual account balances in which a computer-generated  account balance is the same as that of Mr. Jones (part c). Interpret  your results.

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